The Chief Minister said that bankers could play an important role by extending financial assistance to developmental schemes under the Annual Credit Plan 2012-13.
Chief Minister N Kiran Kumar Reddy has requested bankers to become partners in shaping Andhra Pradesh as a welfare state, and also in its economic development.
Addressing the 179th State Level Bankers' Committee meeting at Jubilee Halls here on Friday, the Chief Minister said that the bankers could play an important role by extending financial assistance to developmental schemes under the Annual Credit Plan 2012-13. He congratulated all bankers for exceeding the targets of the credit plan, agriculture loans and crop loans in the year 2011-12. As against the target of Rs. 73,316 crores for the credit plan, the achievement was Rs. 78,766 crores of 107%. Similarly, Rs. 58,510 crores (122%) were achieved against the target of Rs. 48,000 crores in agriculture loans, and as against the target of Rs. 30,985 crores of crop loans, Rs. 36,451 crores (114%) were achieved.
The Chief Minister said that the target of Kharif Crop loans has been achieved by 98.1%. As against the target of Rs. 23,837 crores, as much as Rs. 23,396 crores were disbursed. The target for Rabi season is Rs. 13,300 crores. Rs. 1,1518 crores has been disbursed for payment of input subsidy.
Informing that so far, 37.35 lakh accounts have been opened, Kiran Kumar Reddy said that Andhra Pradesh was the first state in the country to provide interest free crop loans up to Rs. 3 lakhs. He said that the schemes have benefited about one crore farmers in the state. Stating that for Rabi 2011, the government has reimbursed the interest, from Khariff this year, farmers need to pay only principal within one year and government would pay interest on his behalf.
The Chief Minister informed that last year Rs 350 crore loans were given to 1.95 lakh Licensed Cultivators and this year, Rs 2,000 crore have been earmarked for them. He requested the bankers to pay personal attention and expedite loans to all Licensed Cultivators. He also asked the bankers to implement the revised scales of finance for all major crops in the State. He also appealed that the banks extend the revised Kisan Credit Card scheme wherein farmers could enjoy the limits sanctioned for an uninterrupted period of five years. He said the banks should extend the facility through 'Smart Card'.
However, the Chief Minister expressed unhappiness over the poor performance of banks in giving loans under Urban Housing programme. He said banks were not considering fresh loans to the poor beneficiaries, quoting over dues as the reason. He was also dissatisfied with the financing of Medium, Small and Micro Enterprises (MSME) sector. He said the credit extended to MSME Sector till the end of June this year, stood at Rs 1,658 crore against the target of Rs 9,343 crore or just 17.75 per cent.
Kiran Kumar Reddy asked the bankers to pay special attention to loans sponsored by SC, ST and Minorities Finance Corporations. He also advised the Bankers and State Government officials to prepare a Crop Action Plan.
Speaking on the occasion, Finance Minister Anam Ramnarayana Reddy urged the bankers to extend liberal support to the renewable energy projects.
In view of the recent scam in the Minorities Finance Corporation, Chief Secretary Minnie Mathews asked the bankers to be cautious in opening accounts and monitor their functioning properly.
Cooperation Minister Kasu Krishna Reddy, Handloom Minister G Prasad Kumar, SLBC President and Andhra Bank CMD BA Prabhakar and other officials also spoke. (INN)