The Hindu Business Line : Banks may surpass credit plan targets in AP

Balance sheet
CD ratio stands at 74.04% against RBI norm of 60%
Priority sector advances constitute 66.15% of total advances while agricultural account for 31.17%
71.49 lakh kissan cards distributed
Finance to SHGs highest in AP in the country

Hyderabad , March 16

Banks in Andhra Pradesh are set to surpass the targets of annual credit plan for 2005-06, according to Mr K. Ramakrishnan, Chairman and Managing Director of Andhra Bank, the convenor of the State Level Bankers Committee.

Addressing the State Level Review Meeting here on Thursday, he said the banks in the State could lend Rs 26,142 crore by February-end as against the target of Rs 28,600 crore for the year ending March 2006, constituting 92 per cent of the target.

The credit deposit ratio of banks in the State stood at 74.04 per cent against the RBI norm of 60 per cent. Interestingly, the CD ratio is well above 60 per cent in all the districts of the State.

The CD ratio of public sector banks is over 72 per cent, while that of regional rural banks (RRBs) is well above 90 per cent, Mr Ramakrishnan said.

The banks in the State performed well above the stipulated norms of RBI in various aspects such as priority sector advances and agricultural advances.

According to him, the total priority sector advances by the end of December 2005 stood at Rs 52,158 crore, constituting 66.15 per cent of total advances as against the stipulated RBI norm of 40 per cent. Agricultural advances accounted for 31.17 per cent of net bank credit against the RBI norm of 18 per cent.

Total disbursements under agriculture during the year amounted to Rs 14,492 crore by February 2006 against the target of Rs 16,750 crore for the year, achieving 87 per cent of target for the full year.

While a total of 71.49 lakh kisan cards were issued covering all the crop loan borrowers, the banks in the State financed 12,143 rythu mitra groups (RMGs).

For the first time, 36,506 tenant farmers were financed through RMGs, Mr Ramakrishnan said.

Finance to self-help groups (SHGs) in AP was highest in the country with 4.55 lakh SHGs getting a finance of Rs 1,676 crore.

While the Union Finance Minister asked each bank branch to give loans to 100 new farmers in a year amounting to 4.19 lakh new farmers in Andhra Pradesh, the banks in the State could lend to 4.89 lakh new farmers, achieving 117 per cent of target, he said.

"For successful implementation of all schemes in credit plan, the first step is identification of eligible, interested beneficiary/ entrepreneur. The beneficiary/ entrepreneur should be given a skill development training to enable him to take up economic activity successfully.

"Banks in the State have set up their own rural development institutes and imparting training to the farmers, SHG members and rural youth at free of cost," Mr Ramakrishnan said.

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