CM asks banks to achieve annual credit plan targets

Chief minister K Rosaiah on Monday exhorted banks to work hard to achieve the Rs 55,500 crore credit target set for the financial year 2009-10. As of December, banks disbursed only 69 per cent of the target or Rs 38,759 crore.

Speaking at the 169th state level bankers’ committee (SLBC) meeting here, he asked the banks to work out modalities to achieve the full credit in three weeks by March end to ensure the welfare programmes did not suffer. “I hope the banks will not disappoint me in maintaining the tradition of surpassing the targets of the annual credit plan,” he said.

Finance to tenant farmers who cultivate the land was not picking up on expected lines, he said, adding about 177,000 tenant farmers were provided with Rs 707.81 crore between 2007 and 2010 (February end). He asked agriculture department and bank officials to come out with a solution to meet the credit needs of tenant farmers.

The state had witnessed vagaries of nature in the form of successive drought and floods in 2009, which necessitated rescheduling of term crop loans. “Field level issues should be sorted out. Only 27 per cent of the eligible crop loans have so far been converted to term loans,” the chief minister said asking the banks to adhere to the RBI guidelines in this regard.

Business correspondent model adopted by certain banks was successful in providing basic banking facilities and this could be replicated in new places. Basic banking facilities should be provided to villages with population of about 2,000 by March 2011, Rosaiah pointed out.

Though the state was implementing the smart card project, just about six million, a third of the eligible beneficiaries, have been given smart cards so far. He requested the banks to implement the scheme to quickly reach the levels of saturation for routing the social security pensions and National Rural Employment Guarantee Scheme.

SLBC president and Andhra Bank chairman and managing director RS Reddy said the banks were focussed on financial inclusion. The state had 7,493 banks. While total deposits stood at Rs 2,30,645 crore, advances were at Rs 2,51,008 core. The priority sector lending was Rs 1,20,641 crore (48.06 per cent).