CM Naidu pulls up banks over six-month delay in resolving SLBC issues

Amaravati: Chief Minister N Chandrababu Naidu pulled up bankers at the 236th State Level Bankers’ Committee (SLBC) meeting for failing to resolve all issues raised at the previous meeting held six months ago, questioning the purpose of the review if agreed targets and issues remained pending.

Bankers informed the Chief Minister that action had been taken on nine of the 13 issues, while the remaining four were still under process. Naidu expressed dissatisfaction over the delay and directed banks to ensure that credit and banking services reached every eligible person in the State.

The meeting reviewed sector-wise lending, with total bank advances in Andhra Pradesh reaching Rs 10.28 lakh crore by June 2026. Agricultural credit stood at Rs 3.98 lakh crore.

The Chief Minister said MSME lending had increased but loan sanctions were still below expectations, with some banks lagging substantially. Banks, he said, should extend more credit to tenant farmers and support the State’s target of 15 per cent economic growth despite challenges posed by El Nino. He also asked banks to support the State’s push to lead nationally in the PM Surya Ghar scheme.

By September 10, loans of Rs 3,081 crore had been sanctioned for 1,57,703 applications. Banks had disbursed Rs 18,621 crore to Self-Help Groups, with service charges waived on SHG loans. The Chief Minister noted that AP SHG women had recorded a repayment rate of over 99 per cent, with only 0.67 per cent failing to repay on time, and suggested considering one-time settlement for such cases.

The meeting also focused on cyber fraud and financial literacy. Naidu directed banks to coordinate with the DGP’s cyber security cell and undertake State-wide awareness campaigns. He said SLBC meetings would have meaning only when the targets decided at them were actually achieved.

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