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AP CM raises concern over poor loan disbursal to farmers

Press Trust of India  |  Vijayawada 

Andhra Pradesh Chief Minister N Chandrababu Naidu once again expressed displeasure with the banks over poor disbursal of loans to farmers and said "the banking sector will be good only if the farmers are good."

Addressing the State-Level Bankers' Committee meeting here today, the chief minister pointed out that there were no complaints over availability of seeds, fertilisers, water or power but farmers have been complaining against non-disbursement of loans to the agriculture sector.

"You have to understand the anguish of farmers and help them out," Naidu told the bankers.

Along with digital literacy, the state government would now launch a 'financial literacy' campaign to educate the farmers about the benefits of prompt repayment of loans.

On the suggestion of the bankers, Naidu agreed to constitute a committee to offer necessary counsel to farmers on financial discipline and repayment of loans.

The CM also asked bankers to stop disbursing crop loans through mortgage of gold.

"Take the likely crop production into account while issuing loans and do not mortgage gold or other properties," he said.

Andhra Bank CEO and Chairman of SLBC Suresh N Patel said banks in the state disbursed Rs 23,990 crore as short-term and crop loans till June 30 this season, as against a target of Rs 83,003 crore for the fiscal.

"We have covered an additional 18.95 per cent of farmers under the loan scheme this year and we will achieve 100 per cent crop loan target by the end of the fiscal," he said.

State Agriculture Minister P Pulla Rao, Chief Secretary Satya Prakash Tucker, senior bankers and top bureaucrats attended the meeting.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, September 12 2016. 20:13 IST