Kiran addresses 179 State Level Bankers Committee

Chief Minister N. Kiran Kumar Reddy has expressed concern that not even 10 per cent of the targeted Rs.2,000 crore for financing licensed cultivators was met by banks in the State this year, and called for increasing credit to agriculture, allied sectors and others.

Addressing 179 State Level Bankers Committee (SLBC) meeting in Hyderabad on Friday, he recalled that banks had exceeded the targets for agriculture (122 per cent) and crop loans ( 114 per cent) in 2011-12 and achieved 98 per cent (Rs.23,396 crore) of the target set for kharif in the credit plan for 2012-13. This year, there was a need not only to increase the targets but it was also decided to enhance the scale of financing.

He said the scale of financing was revised by 15-20 per cent for all major crops and urged banks to implement the revised scales. He also wanted them to extend revised Kisan Credit Card scheme to all farmers.

Mr. Reddy said loans to the tune of Rs.4,662 crore were extended as against a target of Rs.11,577 crore to women SHGs so far. Describing credit flow to the housing and handloom sectors as less, he wanted increased credit flow for both.

In particular, he sought the implementation of ‘Revival, Restructuring Reform’ package announced for handloom sector by the Government of India. The Chief Minister also urged the banks to extend assistance in a big way to SCs, STs and minorities. Under the Rajiv Yuva Kiranulu, he wanted the banks to help in achieving the target of 3.6 lakh jobs and promoting self-employment through skills development.

Finance Minister Anam Ramnarayana Reddy said that although it was agreed in previous meeting that at least 15 per cent of the credit in welfare programmes should be provided to minorities, only seven per cent was given, he wanted the banks to launch a special drive to improve it. Referring to the power situation, he said Chief Minister would shortly unveil a solar energy policy and sought bank financing for schemes to promote it.

SLBC president and Andhra CMD, B.A. Prabhakar said that at the end of June 2012, the deposits and advances in the State stood at 3,59,228 crore and 4,15, 010 crore, reflecting a growth of 22 and 21 per cent respectively. He said the credit deposit ratio in the State stood at 115.53 per cent on June 30 as against the prescribed minimum of 60 per cent by the RBI and emphasised the need for resource mobilisation, especially in untapped rural, semi-urban areas. Minister for Cooperation Kasu Krishna Reddy, Minister for Handlooms Prasad Kumar, RBI’s regional director A,.S. Rao and Chief secretary Minnie Mathew also spoke.