KADAPA: The Kadapa District Cooperative Central Bank (DCCB) has suspended the approval of new agricultural loans for the current fiscal year, focusing instead on recovering outstanding debts to strengthen its financial position. The bank has initiated a special recovery drive targeting Rs 3,157 crore in unpaid loans, deploying eight dedicated teams to handle the effort.
This shift in focus has impacted small and marginal farmers who depend on agricultural loans for their operations. The DCCB oversees 71 Primary Agricultural Cooperative Societies (PACS) in the former undivided Kadapa district. So far, it has successfully recovered Rs 2,700 crore of the outstanding loans, meeting 75% of its target within the first two quarters. Encouraged by these results, the bank aims to achieve 100% of its recovery target as soon as possible.
Following a successful deposit mobilization campaign last year, the DCCB plans to prioritize the sanction of new loans next year after clearing the current year’s outstanding debts, to maintain its health and competitiveness in the banking sector.
The eight recovery teams, led by nodal officers and comprising ten DCCB officials each—including branch managers and PACS officials—are working diligently across 24 DCCB branches. Their efforts include setting daily recovery targets, contacting borrowers, issuing defaulter notices, and pursuing legal action if needed.
DCCB Chief Executive Officer P. Rajamani highlighted the bank's progress, stating, “We have made notable advances in loan recovery and are on track to meet our target by the end of this fiscal year. Once this recovery process is completed, we will focus on approving new loans.”