Andhra banks hope to surpass lending target

Banks in Andhra Pradesh expect to surpass the lending target of Rs 28,600 crore this year. Till the end of February 2006, the banks have achieved around 92 per cent of the target. This apart, the banks financed 4,89,565 new farmers this year, higher than the set target of 4.19 lakh.

Speaking at the state-level review meeting and 157th state-level bankers' committee (SLBC) meeting, K Ramakrishnan, chairman and managing director of Andhra Bank, and president of SLBC (Andhra Pradesh), said, "The banks in the state could lend Rs 26,142 crore till the end of February 2006 as against the target of Rs 28,600 crore for 2005-06. I am confident that we can surpass the target by the end of March 2006."

The credit deposit ratio has been 74.04 per cent against the stipulated norm of 60 per cent.

The total priority sector advances at the end of December 2005 stood at Rs 52,158 crore, constituting 66.15 per cent of the total advances, as against the Reserve Bank of India's (RBI) norm of 40 per cent, Ramakrishnan said.

Total disbursements under agriculture up to February 2006 was Rs 14,492 crore, as against the target of Rs 16,750 crore, thus achieving 87 per cent of the target for the year. This is an increase of 29.49 per cent over last year's disbursements under agriculture.

For crop loans, an amount of Rs 11,902 crore has been disbursed till February 2006.

"As per the announcements made by finance minister P Chidambaram, each branch is expected to give loans to 100 new farmers in a year. This year, 4,89,565 new farmers have been financed, thus achieving 117 per cent of the target. Also, for the first time, 36,506 tenant farmers have been financed through Rythu Mithra Groups," Ramakrishnan said.

Meanwhile, T K Dewan, chief secretary, Andhra Pradesh government, said he expected the SLBC meeting to come out with some solutions with regard to the interest rates being charged by micro finance institutions.