SBI–State Government Dispute Over Rayadurgam Lands

In the backdrop of the Rayadurgam land dispute, senior officials of the State Bank of India (SBI) reportedly urged Chief Secretary Ramakrishna Rao to avoid any hasty or strict action against the bank. Amid speculation over withdrawal of government funds from SBI, bank officials met the Chief Secretary and explained their position. The government, however, maintained that its stand on the land issue remains unchanged.

According to the state finance department, nearly ₹6,000 crore worth of government funds are held across various SBI branches, including deposits, welfare scheme accounts, and farmer credit (KCC) accounts. Out of 32.04 lakh KCC accounts in the state, about 18.49 lakh are with SBI. The state is also likely to discuss future banking arrangements with the Union Finance Minister in Delhi.