Andhra credit plan fixed at Rs 1.65 lakh crore

Andhra Pradesh state level bankers committee (SLBC) has approved the state credit plan with a total outlay of Rs 1,65,538 crore for FY17, an increase of 31% over the credit targets fixed for the previous year.

In 2015-16 the banks had disbursed Rs 1,44,423 crore loans in the state for both priority and non-priority sectors while surpassing the target of Rs 1,25,748 crore.

In the current financial year the bankers committee has fixed a target of Rs 1,25,538 crore for the priority sector advances and Rs 40,000 crore for the non-priority sector. Agriculture gets a major share of Rs 83,000 crore followed by Rs 25,000 crore credit target for the MSME sector.

The banks have raised the housing sector credit target by 132% to Rs 12,000 crore from Rs 5,163 crore in the previous year in anticipation of a good demand in the current year. The loan disbursements in the housing sector was only Rs 3,060 crore in the previous year.

However, the loan disbursals to the MSME sector in FY16 was far higher than the targets. The banks had lent Rs 22,262 crore to SME sector compared to the credit target of Rs 16,960 crore.