Administration urged to invoke Revenue Recovery Act against defaulters
The bankers appear to be a worried lot over mounting overdues in the priority sector lending in West Godavari district. The trend is also likely to cast a shadow over the fate of the government-sponsored schemes in the district.
According to an approach paper circulated to the participants at a meeting of the District Consultative Committee (DCC) here on Wednesday, the outstanding dues amounted to Rs. 963.52 crore as against the net loan amount of Rs. 3,695.31 crore under a slew of government schemes.
The heads under which the overdues remained pending recovery are crop loans (Rs. 716.69 crore), agricultural term loans (Rs. 47.92 crore), agricultural allied activities (Rs. 35.02 crore), micro, small and medium enterprises (Rs.11.26 crore), Self-Help Groups (Rs. 38.96 crore), education loans (Rs. 7.51 crore), and weaker sections (Rs. 106.16 crore).
Thanking district Collector G. Vani Mohan for her proactive steps for recovery of ‘bad loans' by constituting mandal-level recovery committees, Lead District Manager R. Sankara Rao said the incidence of overdues did not come down yet. H
e appealed to the district administration to invoke the Revenue Recovery Act against the defaulters.
The pending overdues appear to have an adverse bearing on the SHG financing in the current fiscal, if the approach paper is any indication. It was targeted to extend a financial assistance of Rs. 506 crore through bank linkages in the current financial year.
But only 104 crore was lent in the last six months since the beginning of the financial year. Nageswara Rao, coordinator of the State Bank of India (SBI), said instructions were issued to the Bhimadole branch manager to suspend the SHG financing in the village as a result of non-recovery of dues.
The LDM said the IKP volunteers were detained by the borrowers in an upland village near Jangareddygudem when they tried to persuade them to repay the dues. He said the incidence of non-performing assets was very much on a higher side (25 per cent) in the upland region.
The Collector requested the Velugu project authorities to discourage the SHG members from taking consumption loans from banks so as to improve their performance in terms of recoveries. Instead, they could be motivated to take loans for establishing micro enterprises and asset creation. Meanwhile, The district ranked first in the State by arranging a farm credit of Rs. 60 crore to the tenant farmers under the LEC scheme. Still, there was a need to enhance the lending further, the Collector said.