Amaravati, March 10: Andhra Pradesh Chief Minister Y S Jagan Mohan Reddy on Friday advised the bankers to a adopt a proactive plan in disbursing loans to education and housing sectors. Participating at the State Level Bankers' Committee (SLBC) meeting, he expressed displeasure that banks had lent only 43 per cent and 33 per cent of the loan targets fixed for education and housing sectors respectively, two key socio-economic segments crucial for development.

Further, the Chief Minister reminded the bankers to extend loans to the leftover beneficiaries of free housing plots received from the government, who were promised by the banks Rs 35,000 loans each at a rate of three per cent, which the government will reimburse. According to the Chief Minister, the State government has distributed 31 lakh house sites free of cost for women, including free sand, besides steel and cement at subsidised rates. Andhra Pradesh CM YS Jagan Mohan Reddy Highlights Business Enabling Policy, Infrastructure in the State; Says ‘Just 21 Days for All Approvals’.

He highlighted that the State government will begin construction of an additional three lakh houses in April, totaling 30.75 lakh houses to be built for the poor and called on the banks to extend loans to all the beneficiaries as the worth of each house would rise between Rs 5 lakh and Rs 10 lakh each once they are ready. Meanwhile, Reddy observed that short term crop loans for farmers have touched only 83 per cent, suggesting the bankers to concentrate on this segment.

He also said that loans to tenant farmers had amounted to only Rs 1,126 crore in the first nine months against the target of Rs 4,000 crore to 1.6 lakh farmers in this category. "Bankers must stand by the tenant farmers and extend them loans liberally as Rythu Bharosa is being implemented for them and all the details are being digitalised and details of the cultivation are being e-cropped," he said. Switzerland President Ignazio Cassis Heaps Praises on Andhra Pradesh CM YS Jagan Mohan Reddy, Says 'Reforms in AP Education System Are Commendable' (Watch Video).

The Chief Minister highlighted that banks were paying an interest rate of only four per cent on savings of women's self-help groups but extracting higher interest rates on the loans extended to them. However, he lauded the banks for their support to petty traders and called them to continue supporting the 'Jagananna Thodu' scheme.

Meanwhile, Union Bank of India managing director and chief executive A Manimekhalai said that the banking sector has surpassed the Annual Credit Plan targets in Andhra Pradesh for the fiscal 2022 – 2023, in disbursing loans under the categories of priority sector, agriculture and MSME. The banker noted that the priority sector lending requirement has achieved a target of 99 per cent, agriculture (105 per cent) and MSME (106 per cent) by December 2022.

"I'm glad to see that the banking sector in Andhra Pradesh has surpassed all the regulatory norms in all sectors," Manimekhalai said. The banker observed that the State's economy is on a rising trajectory, following the prevalence of normalcy in the aftermath of the Coronavirus disruption.

She praised Reddy for undertaking decentralization through the division of erstwhile 13 districts into 26, which gave a shot in the arm for administration and bolstering development on all fronts, including bagging investments worth Rs 13 lakh crore in the recently concluded Global Investors Summit.

During the conference, she assured that the banking sector extends its support and cooperation to the State government, including taking active participation in the development of Andhra Pradesh. Manimekhalai called on fellow bankers representing a plethora of banks to strive to achieve 100 per cent digital transformation in 17 districts and appreciated the feat being accomplished in nine districts.

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