CM urges for more credit linkage from nationalised banks

Hyderabad, May 4 (UNI) Andhra Pradesh Chief Minister Y S Rajasekhara Reddy today pressed for more credit linkage from nationalised banks for SHGs and housing for weaker sections of people, even as the bankers came out with a Rs 42,000 crore credit plan for the state during 2007-08.

Not satisfied with Rs 5,124 crore projected advances to women SHGs during the new fiscal, as against Rs 3,000 crore advanced to these groups during the previous year, Dr Reddy, launching the credit plan, impressed the bankers that the repayment by these groups was very good.

"A silent revolution is witnessed across the state", he observed, adding that banks should step up advances to these groups.

Referring to the debt swapping scheme for members of the SHGs, who had in the past secured loans from money lenders at a high interest rate, he wanted the bankers to at least cover two villages under each branch's service area to provide relief to these women.

Dr Reddy also wanted the bankers to concentrate on farm-allied activities, including dairying and fishing as the farmers could yield better returns within a short period of time.

He wanted the bankers to step up advances to Rs 7,000 crore for housing for various sections of people.

State Level Bankers' Committee Convenor and Andhra Bank Chairman and Managing Director K Ramakrishna projected a credit plan of Rs 42,000 crore, including Rs 22,650 crore for the farm sector, Rs 6,700 crore for non-farm sector in rural areas.

The banks in the state had surpassed Union Finance Minister P Chidambaram's target of doubling farm credit in three years from 2003, by advancing Rs 33,856 crore, registering a growth rate of 110 per cent during the period, Mr Ramakrishna said. The nationalised banks in the state had advanced Rs 982.75 crore crop loans to 4.21 lakh new farmers, against the target of 4.19 lakh farmers, he added.

UNI