Extend support to agri sector, Chandrababu Naidu tells bankers

Amaravati: Chief Minister N Chandrababu Naidu expressed unhappiness over the banks regarding their poor response towards government schemes and insisted that they should change their working style. In the 200th State Level Bank Committee (SLBC) meeting at Secretariat on Friday, the Chief Minister emphasised the need to support the agriculture sector in the State.

• Expresses unhappiness over the poor response of banks to govt schemes
• Says banks should change their working style
• Points out that banks are not responding on time when farmers approach for loans
• Stresses need for bringing down cost of agricultural cultivation

“The indifferent attitude of banks over government schemes and programmes damages the reputation of government. Bankers are not responding in time even as farmers are approaching them with loan sanction letters issued by the government,” he observed.

The Chief Minister said that he was aiming at reducing the cost of cultivation for the farmers and introducing skill development programmes for self-help groups.

He said some private banks were intentionally ignoring government’s development programmes even though the banks were deriving benefit from the government schemes. “We will suggest to people not to go to such private banks and open accounts,” he said.

The Chief Minister said that he wants the State to have an economic growth of 15% every year. “I will ensure that power and water supply is provided along with any support required. I want to ensure that no government asset remains a non-performing asset,” he said.

The Chief Minister expressed happiness over the development of self-help groups. He said that his objective was to ensure that they become self-sustainable business women, and ensure their access to the Industries and corporate sector.

He said that there should be a 20% growth in the MSME sector, but the reports show only a 2% growth. MSMEs and business models need to be strategised based on a thorough study done, and by identifying the demand-driven sectors. He suggested to the officials to create a portal for MSMEs. He said that he would monitor the implementation of every government project and study the results bank-wise.

The Chief Minister urged all banks to participate in the development schemes of the government, not levy unnecessary bank charges, and told the government officials to regulate their progress more often. He said, “By 31st of October this year, there must be a visible change in the participation of banks, and there must be a visible increase in the disbursement of credit.”

As per a suggestion by Kutumbarao, Deputy Chairman of AP Planning Commission, the Chief Minister has asked the officials to establish a coordination committee for this purpose. A 11-member committee including bank representatives from State Bank of India, Andhra Bank, Canara Bank, Syndicate Bank, APGVB and government officials will act as a bridge between people, banks and government and ensure grounding of loans.

Against the annual credit plan target of Rs 1,66,806 crore for the State for 2017-18, the banks have disbursed Rs 50,090 crore (30.03%) as of June 30, 2017. The target for short-term rabi and kharif loans is Rs 63,106 crore, and the total farm credit target is Rs 83,209 crore.