The banks failed to achieve the targets set for the kharif season this year. They could disburse loans of ₹3,260 crore, which is a little over 32%, when the target was ₹10,052 crore.
The annual credit plan for 2017-18 was ₹1,66,806 crore. The target achieved so far is ₹50,090 crore, which is 30%. The priority sector lending was ₹37,670 crore while the target set was ₹1,26,806 crore. Non-priority sector lending stood at ₹12,420 crore as against the target of ₹40,000 crore.
The bankers informed this at the State Level Bankers Committee (SLBC) meeting held at the Secretariat on Friday.
Chief Minister N. Chandrababu Naidu pointed out that the bankers were not sanctioning loans though farmers were issued loan eligibility cards (LECs).
“The government has been receiving complaints in this regard. The bankers’ approach is bringing disgrace to the government. The banks need to focus on government schemes too. The banks have to change their style of functioning and set things in order before October-end,” Mr. Naidu said.
Panel constituted
Following a suggestion from Planning Board Vice-Chairman Ch. Kutumba Rao, the Chief Minister constituted a 10-member committee for better coordination.
Mr. Kutumba Rao, representatives from finance, agriculture, industries, and welfare departments, Andhra Bank, State Bank of India, Canara Bank, Syndicate Bank, and RBI would be members of the committee.
A minimum growth of 20% in the MSME sector was necessary for development of the State. But the reports show only a 2% growth. MSMEs and business models need to be strategised based on a thorough study and identification of the demand-driven sectors, he said.
SLBC convener and Andhra Bank Circle General Manager G.S.V. Krishna Rao raised the issue of interest-free loans of up to ₹1 lakh to the tenant farmers.
Mr. Naidu suggested that 10% of the farm loans could be given to the tenant farmers. An action plan to protect the interests of land owners should be drawn, he said.
