The Hindu Business Line : 17.4 pc rise in AP credit plan outlay

ANDHRA Pradesh has projected a credit plan outlay of Rs 23,479.2 crore for the current fiscal 2004-05, an increase of 17.4 per cent over Rs 20,000 crore targeted during the previous fiscal, and against the Nabard projections of Rs 22,537.98 crore.

Announcing this at the State Level Bankers' Committee (SLBC) meeting here on Monday, the SLBC President and Andhra Bank Chairman and Managing Director, Mr T.S. Narayanasami, said the State achieved 90 per cent of the targeted annual credit plan at Rs 17,937 crore during last year.

As against the target of Rs 9,667 crore in crop loans, the State achieved 82 per cent at Rs 7,903 crore. In the non-farm sector, 115 per cent was achieved at Rs 3,385 crore as against the target of Rs 2,949 crore. The achievement in other priority sector amounted to 112 per cent at Rs 5,533 crore compared to Rs 4,922 crore.

Mr Narayanasami said the State suffered poor performance in agricultural term loans at Rs 733 crore, which amounted to 48 per cent of the targeted credit of Rs 1,515 crore, and achieved Rs 383 crore towards agriculture and allied segment, constituting 40 per cent of the targeted amount of Rs 947 crore.

Explaining the key reasons for not achieving the targets under crop loans and agricultural term loans, he said that since majority of the farmers were tenant farmers, the banks were unable to sanction loans. Further, about 10 per cent of the farmers were not having Pattadar passbooks and five per cent could not repay their earlier loans and take fresh loans.

As crop insurance was made compulsory, a portion of farmers was reluctant to take loans, especially in case of commercial crops since the insurance premium was very high. Owing to continuous drought, there were low disbursements under plantation and horticulture sectors. In the case of poultry, it was due to slump in the market.

Keeping these reasons in mind, the targets for agricultural term loans and allied activities during current fiscal were raised by 19.79 per cent and 23.33 per cent respectively at Rs 1,814.75 crore and Rs 1,167.9 crore respectively. The target for crop loans was increased by 15.91 per cent at Rs 11,204.85 crore, small-scale industries by 22.61 per cent at Rs 3,615.85 crore and other priority sectors by 15.32 per cent at Rs 5,675.85 crore.

Of the current fiscal's credit plan, the public sector banks are proposing to extend Rs 14,654.55 crore, amounting to 62.42 per cent of the targeted credit, AP Cooperative Bank Rs 4,248 crore (18 per cent), Regional Rural Banks Rs 2,662 crore (11.34 per cent), while the private sector banks plan to extend Rs 933 crore (3.97 per cent), Mr Narayanasami said.

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