Andhra Pradesh

Banks cross priority lending target in Anantapur

Push to entrepreneurship: Syndicate Bank General Manager K.J. Prahlad (centre) at the distribution of cheques for loans sanctioned to SHG groups in Anantapur .

Push to entrepreneurship: Syndicate Bank General Manager K.J. Prahlad (centre) at the distribution of cheques for loans sanctioned to SHG groups in Anantapur .   | Photo Credit: R_V_S_PRASAD

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35,000 loans disbursed at Customer Outreach programme

Anantapur, chosen along with Srikakulam district in Andhra Pradesh, for implementation of the Customer Outreach programme by all public sector banks, has seen a good response. The lead bank of the district, the Syndicate Bank, coordinated the two-day programme where 35,000 loans were disbursed by all the 18 participating banks.

Syndicate Bank General Manager K.L. Prahlad told The Hindu that ₹559 crore was the value of loans disbursed to MSME sector and some for the agriculture sector. Focus of the outreach programme was to motivate prospective small entrepreneurs to start their own business and each bank manager had to disburse loans under Stand-Up India Scheme or Mudra loans.

As part of the Centre’s aim to make India a 5 trillion economy, the objective of the Stand-Up India scheme was to facilitate bank loans between ₹10 lakh and ₹1 crore to at least one Scheduled Caste (SC) or Scheduled Tribe (ST) borrower and at least one woman borrower per bank branch for setting up a greenfield enterprise, he explained.

Default rate

While the default rate among MSME borrowers was 10% to 12% across the banks, they were being pursued to repay early and be eligible for higher credit.

For Anantapur, the total target for lending by the banks was ₹21,599 crore, and of that ₹15,830 crore was under priority sector. Within the Priority Sector lending, ₹11,600 crore was the share of agriculture/crop loans, out which ₹7,100 crore had been achieved in the kharif season (₹6,000 crore target) and for the MSME sector ₹2,300 crore would be given basically to promote garment making in Rayadurg, Kalyandurg and Hindupur and handloom and powerlooms in Dharmavaram, Kadiri and Hindupur.

So far this fiscal ₹635 crore had been disbursed for the MSME sector, ₹280 crore of it for setting up of new units. For the housing sector, ₹480 crore credit had been disbursed by all banks in the district, while education loan saw a marginal rise at ₹52 crore and all of them were fresh loans.

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Printable version | Dec 8, 2019 10:49:43 AM | https://www.thehindu.com/news/national/andhra-pradesh/banks-cross-priority-lending-target-in-anantapur/article29790443.ece

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