CM asks banks to up SHG lending

Chief Minister K Rosaiah expressed concern over banks’ inability to lend to self-help groups on expected lines. He said the banks had set a target of Rs 9,000 crore as loans but could only disburse about Rs 6,501 crore during the financial year 2009-10.

Speaking at the 170th state level bankers’ committee (SLBC), he asked banks and government officials to analyse reasons for failure in achieving the targets.

The last crop year was a testing period for farmers due to successive drought and floods. So far, only 30 per cent of the crop loans had been converted into term loans, the chief minister pointed out. The situation, if not improved, would hamper disbursals during the ensuing kharif season, he said.

He also expressed concern over the low rate of financing to the tenant farmers despite calls from several steering committees. “A solution should be evolved before kharif lending commences," he said.

SLBC president and Andhra Bank chairman and managing director, R S Reddy said the credit plan for the year 2010-11 had been fixed at Rs 82,351 crore, including Rs 65,763 crore under the priority sector.