• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Our Bureau

Hyderabad, Dec. 7 The Andhra Pradesh Government is likely to extend the ‘Pavala Vaddi’ (three per cent interest) loan scheme to the farmers from next kharif season.

“We are contemplating the issue seriously and have to take a final decision in this regard,” the Chief Minister, Dr Y.S. Rajasekhara Reddy, said while addressing the 162nd State Level Bankers’ Conference (SLBC) here on Friday.

Appreciating the performance of the banks in implementing annual credit plan in the first half of the current fiscal, the Chief Minister had asked the banks to remove Rs 1 lakh cap on lending to self-help groups (SHGs).

He also wanted banks to double the targets of the SHG loans under Indira Kranthi Patham from Rs. 7,000 crore to Rs. 14,000 crore.

Mr K. Ramakrishnan, President of State Level Bankers’ Committee (SLBC) and Chairman and Managing Director of Andhra Bank, said banks in Andhra Pradesh were likely to surpass the target of annual credit plan for the current fiscal year well in advance,

As against the credit plan outlay target of Rs 42,000 crore for the year 2007-08, the State had achieved Rs 24,356 crore (58 per cent).

The State had surpassed the target of annual credit plan consecutively for three years during the last seven years, he said.

The credit deposit ratio of the State was at 90.53 per cent as on September 30, 2007 as against the RBI norm of 60 per cent. The deposits stood at Rs 1, 52,101 crore registering 20.83 per cent growth compared to the corresponding period last year.

Under priority sector, Rs 88,181 crore was outstanding constituting 64.04 per cent of total advances as against the RBI norm of 40 per cent.

About 2.80 lakh new farmers have been financed during the period under review while a total of 2.74 lakh new Kisan Cards were issued taking the total number of cards to 79.15 lakh, he said.

Mr Ramakrishnan suggested that the State Government create a separate agency at State, district and mandal levels for loan recovery.

“It will be a first of its kind in the country. Officials from Revenue Department and banks may be taken on deputation to work in this agency,” he added.

More Stories on : Farm credit | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
AP Govt planning farm loans at ‘Pavala Vaddi’

Copyright © 2007, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line