27 cr recoverable from 1,018 SHGs

Kothagudem:  Living standards of many self-help groups’ women did not improve as some of the groups availed themselves of bank loan but failed to run business, according to a survey conducted by the State government. Therefore, these SHGs are falling short of their targets. These groups availed loans, paid installments to the bank regularly for some months before becoming defaulters.

According to a conservative estimate, about 1,018 SHGs defaulted payment of Rs 27 crore to banks for over several months. The banks have included them in the list of the non-performing assets. About 863 SHGs have been included under the category of the portfolio-at-risk (PAR). Efforts by the banking officials and Indira Kranti Patham officials have not borne fruit to recover the dues from these groups. The members have been tendering the stock reply to the loan recovery officials that they would pay the installment whenever they have money.

Some others are not able to say a tentative date when they would repay the loan. Notices served on the defaulters evoked no response at all from the defaulters. The bank officials have had a tough time in the recovery of the loans. In fact, Rs 377 crore has been advanced as loans to 16,064 groups in 22 mandals of Bhadradri-Kothagudem district. For the past three years, not a single rupee has been credited into the bank account from the groups whose debt has been classified under the NPA and the groups that are classified as the portfolio-at-risk.

Taking a cue from the defaulter members, those who have the capacity to pay are willfully defaulting repayment of loan. Officials say that the failure of repayment was due to many members investing the loan amount in agriculture. Bank officials take precautions to limit the NPA to not more than 2 per cent of the total amount advanced as loan.

The NPA of the SHGs in Annapureddypalli, Tekulapalli, Bhadrachalam, Sujata Nagar, Julurupadu, Chundrugonda, Karakagudem and Mulkalapalli mandals ranges between 0.26 per cent and 1.77 per cent. The limit of NPA for loan recovery should be 5 per cent, but it ranges between 3.27 per cent and 4.73 per cent as far as the SHGs in Chunchupalli, Burgampahad, Pinapaka, Aswaraopeta mandals.

The government that was in power in 1996 in undivided AP commenced advancing loans to the SHGs. Starting with Rs 50,000, the groups availed a maximum loan of Rs 5 lakh over a period of time. Even if they repay the loan, the groups would again get not more than Rs 5 lakh. So the spirit of the SHG women to repay the loan has been dampened.

SHGs in the State, anticipating loan waiver from government since the government of AP announced the waiver in its 2014 election manifesto, are reluctant to repay the loan, it is speculated.  Several SHGs in the Agency mandal of Dummugudem bordering AP have not paid at least a single rupee towards the repayment of the loan.

In Aswapuram mandal, a Revenue Official had pasted notice on the house of a SHG member, but has no impact. In Charla mandal, the Andhra Bank advanced loans to the tune of Rs 5 crore to 500 SHGs, but it remained unpaid, says Andhra Bank Manager I Lakshminarayana. The bank has been offering one-time settlement facility to the defaulters.
 
DRDA project Director P Jagat Kumar Reddy, speaking to The Hans India, said that the dues from SHGs in Charla and Dummugudem mandals are very high. Officials have initiated measures to recover the dues.