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Mr T. S. Narayanasami, Chairman and Managing Director, Andhra Bank, and President of State Level Bankers Committee (SLBC) handing over the CD-Rom of Andhra Pradesh State Credit Plan 2005-06 to the Chief Minister, Dr Y.S. Rajasekhara Reddy, Mr Mohan Kanda, Chief Secretary and Mr Raghuveera Reddy (right), Minister of Agriculture of State at the SLBC meet in Hyderabad on Monday. Mr R. Balakrishnan (left), Executive Director, Andhra Bank, is also seen. — A. Roy Chowdhury

Hyderabad , April 25

THE State Level Bankers' Committee (SLBC) of Andhra Pradesh, lead by Andhra Bank, has surpassed all the targets of its annual credit plan for the first time in several years.

Disclosing this here on Monday, the SLBC President and Andhra Bank Chairman and Managing Director, Mr T. S. Narayanasami, said the achievement under the annual credit plan for the year 2004-05 is 104 per cent of the target. Against the target of Rs 23,480 crore, the SLBC achieved Rs 24,346 crore.

Referring to the resolve of the Union Finance Minister, Mr P. Chidambaram, to double agriculture credit within three years, the SLBC President said the banking community of Andhra Pradesh has fulfilled it in ample measure.

"The pace at which agriculture credit has increased during the year under review will lead to more than doubling of agriculture credit within the next couple of years," Mr Narayanasami said.

The outstanding agriculture advances at the end of March 2005 stood at Rs 21,685 crore, constituting 29.96 per cent of total advances against the RBI norm of 18 per cent. The net increase recorded during the year was Rs 5,557 crore.

"The banking community, as per the direction of the Union Finance Minister, has extended crop loans to 9,94,478 new farmers amounting to Rs 1,695 crore, representing an achievement of around 237 per cent of the target.

"The crop loans to 8.29 lakh farmers in drought-affected areas in the State were converted into term loans. The flow of credit to agriculture during the year has registered an increase of 32.25 per cent as against the target of 30 per cent set by the Union Finance Minister. And this is exclusive of converted loans," Mr Narayanasami said.

Based on the record performance of bankers in the State, the SLBC has firmed up an annual credit plan for 2005-06 at Rs 28,600 crore against the achievement of Rs 24,346 crore in the previous year and the Nabard projection of Rs 24,234 crore. Under the agricultural sector, a net increase of Rs 4,803 crore is projected with a 40 per cent increase over the last year. The Andhra Pradesh Chief Minister, Dr Y.S. Rajasekhara Reddy, has strongly appealed to bankers in the State not to extend agricultural loans to farmers who go for high-risk and high-yield crops.

He made this appeal while lauding bankers in the State for their outstanding performance in surpassing the targets set for the annual credit plan of 2004-05, especially in agricultural advances.

Observing that the Andhra Pradesh farmers were taking high risk than their counterparts in other States, the Chief Minister said failure of such high-risk and high-yield crops was resulting in farmers resorting to suicides.

Addressing the SLBC Dr Reddy asked bankers to encourage crops that were covered by the minimum support price (MSP) while extending agricultural loans.

"Discourage loans as much as possible to high-risk crops like tobacco, cotton and chilli," he appealed.

Encouraging farmers to go in for low-risk crops that were covered by MSP, alternative crops and allied activities such as dairy, poultry, fisheries and vermicompost, would also increase farmers' loan repayment capabilities to bankers, he said.

Responding positively to the plea of bankers to extend stamp duty waivers to loans of over Rs 1 lakh while mortgaging lands, the Chief Minister said the Government would enhance the limit to Rs 2 lakh.

Elaborating the details of the annual credit plan for 2005-06, the SLBC Convenor and Andhra Bank General Manager, Mr A.L. Nageswar Rao, said the public sector commercial banks in the State project lending of Rs 18,976.69 crore of the total plan outlay of Rs 28,600 crore, amounting to 66.36 per cent.

The private sector banks share Rs 1,560.75 crore, accounting for 5.46 per cent, regional rural banks Rs 3,264.98 crore, aggregating to 11.42 per cent, while the Andhra Pradesh Cooperative Bank will share Rs 4,230.17 crore, which amounts to 14.79 per cent of the credit outlay, Mr Nageswar Rao said.

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