Farmers not coming forward to renew loans in AP, say bankers

Bankers in Andhra Pradesh have today asked the state government to see to it that farmers renew their loans as many of them have not been coming forward to do so even though the government released 20 per cent of the debt redemption amount.
"Banks have always contributed to the development of the state but are at the receiving end, since many farmers or borrowers are not coming forward to renew loans despite 20 per cent of the debt redemption amount released by the government having been credited to their accounts," Andhra Bank Chairman and Managing Director C V R Rajendran, said 189th State Level Bankers Committee (SLBC) meeting held here today.

The number of grievances about the debt redemption scheme is very high and their resolution has consumed considerable time, impacting recovery efforts by banks, he added.
"There is a need for wide and adequate publicity from the government advising farmers to get their loans renewed by paying the difference amount and assuring them of payment of the balance amount for debt redemption amount subsequently," Rajendran said.
Such efforts are required for continuing agricultural operations which is the backbone of the state's economy.
"The government may advise farmers or borrowers that the accounts have to be in order and a performing asset for receipt of the balance debt redemption amount," he said.

The agriculture sector's overdues and non-performing assets have been mounting in banks owing to reluctance of farmers to repay or renew loans in view of the debt redemption scheme announced by the government, he said.
Self Help Groups, which had an excellent recovery track record in the state before debt redemption was announced, is now distraught, Rajendran said.