The Hindu Business Line : AP bank deposits up 20%, advances 33% in first half

Looking ahead
Banks gear up for new debt waiver scheme
State Govt urged to look into the issue of pattadar passbooks
State urged to release Rs 125 cr for PM relief package

Our Bureau

Hyderabad, Nov. 12 The total deposits of the banking sector in Andhra Pradesh registered an increase of 20.12 per cent during the first half of the current financial year to Rs 1,82,708 crore as against Rs 1,52,101 crore during the corresponding period last year.

The advances for the April-September period grew 33.35 per cent to Rs 1,83,629 crore (Rs 1,37,703 crore), according to the data presented at the State Level Bankers’ Committee (SLBC) here on Wednesday.

The credit deposit ratio of the banking sector in the State during the period was 100.5 per cent (90.53 per cent) as against the stipulated ratio of 60 per cent.

According to the data, achievement under the annual credit plan during the period under review was Rs 17,585 crore against the target of Rs 25,500 crore for the half year, registering 68.96 per cent of the target.

Agriculture advances

The total priority sector advances was Rs 97,384 crore constituting 53 per cent of the advances while agricultural advances were at Rs 49,629 crore, constituting 27 per cent of the total advances.

“The net increase of agricultural advances during the year was Rs 11,837 crore,” Mr R.S. Reddy, President, SLBC-Andhra Pradesh, and Chairman and Managing Director of Andhra Bank, said at the meeting.

He added that an amount of Rs 8,129 crore, 67.74 per cent of the total target of Rs 12,000 crore, was disbursed during kharif 2008. “The delayed monsoon and implementation of the debt waiver/relief scheme created some adverse impact on lending during the kharif season,” he said.

As against the target of Rs 3,000 crore for agricultural term loans including allied activities, Rs 2,894 crore was disbursed during Kharif 2008, a 96.47 per cent achievement at the end of September 2008.

Mr Reddy also said that for the rabi season (October to March next year), the disbursement target of Rs 8,000 crore has been set and till the end of October, Rs 2,000 crore was already disbursed.

“Controlling banks have been requested to issue necessary instructions to the branches to disburse crop loans on top priority to reach the target and they have also been asked to ensure timely sanction of loans to the farmers,” he said.

During the first half of the year, banks have financed 1,29,540 new farmers against the target of 4,38,800, achieving 29.52 per cent of the target. In the period under review, 1.18 lakh new kisan credit cards were issued, taking the total number of card holders to 81.63 lakh.

Mr Reddy also said that banks are geared up for the State Government’s new scheme to be implemented from November 19 wherein 32 lakh farmers, who were not covered under the Agriculture Debt Waiver and Relief scheme, will be given Rs 5,000 each. It is estimated that Rs 1,600 crore will be disbursed during the scheme.

He also urged the State Government to look into the issue of pattadar passbooks — as there were a lot of fake pattadar passbooks — and to issue new passbooks to eligible farmers.

FINANCING SHGs

“There is also a need to step up efforts for improving financing to self-help groups in the coming months as banks, by the end of September, could lend up to Rs 7,100 crore against the total target of Rs 11,000 crore for the full year,” Mr Reddy said.

The bankers also asked the State Government to release Rs 125 crore for the implementation of the Prime Minister Relief Package.

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