Jagan asks banks to play more proactive role to achieve economic growth in AP

VIJAYAWADA: Chief Minister Y.S. Jagan Mohan Reddy has urged the banking sector in Andhra Pradesh to play a proactive role and adopt a more positive approach towards the housing and education sectors.

“AP has achieved good results vis-à-vis its annual credit plan in the nine months of the financial year 2022-23. We registered a 124.69 per cent success in this respect. Let us take this forward in a more resolute manner,” the CM said while addressing the 222nd state-level bankers committee (SLBC) meeting at the CM’s Camp Office in Tadepalli on Friday.

The CM expressed displeasure over the banks extending loans only up to 42.91 per cent and 33.58 per cent of the target fixed for the educational and housing sectors respectively, the present fiscal.

Mentioning about the success of the global investors summit in Visakhapatnam, he noted that it recorded investment proposals worth Rs 13,05,663 crore through 352 MoUs. This would have the potential to provide employment to 6,03,223 persons, the CM said.

Jagan Mohan Reddy appealed to the bankers to extend loans to potential entrepreneurs and ancillary MSMEs (Micro, Small and Medium Enterprises) to enable them, as also the state, achieve solid economic growth.

He said the government has so far distributed 30.75 lakh house sites free of cost to women in Andhra Pradesh. “Necessary sand is supplied free for the construction of these houses while steel and cement are being supplied at subsidy rates,” he said.

The CM reminded the bankers that they had agreed in the last SLBC meeting to provide a loan of Rs 35,000 for each of the beneficiaries, additionally, at 3 per cent interest — which would be reimbursed by the government. Several of the beneficiaries of the government housing scheme however failed to get this, he said.

Jagan Mohan Reddy asked the bankers to make sure they provided the loans for those who were left out.

The CM said the government would begin construction of an additional three lakh houses from next month. A total of 30.75 lakh houses will be built for the poor. Bankers must extend loans to all the beneficiaries, he said, adding that the worth of each of these houses would go up to Rs 5 lakh to Rs 10 lakh once they were ready for occupation.

Speaking about the short-term crop loans extended to farmers, the CM said the related targets were reached only up to 83. 36 per cent so far. “Bankers should make sure the targets are fully achieved. Only Rs 1,126 crore was provided as loans to tenant farmers in the first nine months of the present fiscal as against a target of Rs 4,000 crore in loans to 1,63, 811 tenant farmers,” he said.

Jagan Mohan Reddy said, “While banks are paying only four per cent interest on the savings of women’s self help groups, banks are collecting more interest on the loans given to the SHGs. Bankers must reconsider this and pay more interest to SHGs on the women’s savings.”

Lauding the bankers for liberally extending loans to petty traders, the chief minister asked them to display the same enthusiasm in future also by supporting the Jagananna Thodu.

“At a time when the government is trying to change the rural landscape through RBKs, digital libraries, English medium schools, village and ward secretariats, skill development centres in all assembly constituencies and a skill development university for improving the skills of the youth, it is a must for banks to play a more proactive role and encourage the positive changes in the state’s economic scenario,” he said.

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