The Hindu Business Line : AP pegs Rs 47,000 credit outlay for 2008-09

“We have projected this outlay as against the achievement of Rs 42,773 crore at the end of 2007-08 giving due emphasis to all State-specific schemes such as AP Micro Irrigation project, Rajiv Yuva Shakti and Rajiv Grihakalpa, among others,” Dr K. Ramakrishnan President of SLBC (AP) and Chairman and Managing Director, Andhra Bank said at the launch of State Credit Plan for 2008-09 here on Wednesday.

The bankers in the State could surpass the target of Rs 42,000 crore set for the year 2007-08, he said. The credit targets were exceeded by the banks in all major sectors by 1 to 2 per cent.

Govt Guarantee

He requested the Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, who participated as Chief Guest to take measures to weed out fake pattadar passbooks. “The farmers are depositing fake pattadar passbooks to obtain loans from the banks and not repaying the same. A new foolproof system should be developed by the Government for issue of pattadar passbooks with the support of technology,” he said.

Speaking after releasing the State Credit Plan, Dr Reddy said the bank lending to the members of SCs, STs and other weaker sections to set up small and medium enterprises was not up to the mark.

“The banks are asking collateral security and other guarantee to sanction these loans. The Government is ready to provide guarantee for such loans,” he said expressing his dissatisfaction over the performance of the Department of Industries in this regard.

He asked the officials of the department of industries to take necessary action to encourage insurance on such loans to satisfy the banks. The Government was ready to foot the insurance premium or provide guarantee, he said.

Financial Inclusion

Expressing satisfaction on the growth of bank lending to the self-help groups the Chief Minister asked the bankers to speed up the process of financial inclusion in the State.

“As of now, 2674 villages in the State have been covered under financial inclusion. The target for this year was 8,248 villages,” he pointed out.

Referring to the agricultural loan waiver as announced in the Union Budget this year, Dr Reddy said out of Rs 60,000 crore waiver across the country, Andhra Pradesh accounted for Rs 12,560 crore.

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