AP pegs priority sector outlay for 2011-12 at Rs 68,393 cr

The State Level Bankers' Committee (SLBC) of Andhra Pradesh has proposed an outlay of Rs 68,393 crore for the priority sector in the annual State credit plan for 2011-12.

“This is in comparison with a plan size of Rs 61,685 core and achievement of Rs 72,878 crore,'' Mr R. Ramachandran, President of SLBC, Andhra Pradesh and Chairman and Managing Director of Andhra Bank said at the 174{+t}{+h} SLBC meet held here on Friday.

The National Bank for Agriculture and Rural Development (Nabard) communicated to SLBC that the Centre allocated Rs 48,000 crore, which would be disbursed for the agriculture sector.

Including Rs 30,599 crore proposed under non-priority sectors, the total plan size is Rs 1.04 lakh crore for the year.

Provision of banking facilities in un-banked and under banked areas, financial inclusion, SHG bank-linkage programmes, financing rural godowns and agricultural infrastructure were among the thrust areas, Mr Ramachandran said.

Over dues

Observing that the “rising trend of over dues under various schemes is a major concern for all banks,” the Andhra Bank chief said there was a need for adequate publicity from the Government side on interest benefit on agricultural and SHG loans.

In all, 680 mandals hit by natural calamities are eligible for interest waiver announced by the State Government on loans taken prior to March 31, 2011. SLBC had designed a scheme in which letters would be sent to the farmers on the benefit of interest waiver, he added.

Referring to the annual credit plan for last year, the SLBC President said banks could disburse Rs 72,878 crore against a target of Rs 61,685 crore, which marked 118 per cent achievement.

“The outstanding credit under the agriculture sector surpassed Rs 83,000 crore which is one of the highest in the country,'' he added.

Storage facilities

The Andhra Pradesh Chief Minister, Mr N. Kiran Kumar Reddy, said the agricultural yield had gone up by 32 per cent in 2010-11 compared with the year-ago period.

“This calls for additional storage facilities. We are working on providing more godowns for storage,” he said.

Stating that he was ‘hurt' by the display of photos of farmers who defaulted payment of loans in one branch of a ‘particular' bank, the Chief Minister asked banks to desist from such practices.

Special efforts should be taken by banks to ensure better bank-linkage to members of se;f-help groups who were hit by microfinance institutions in the State, he added.

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