The New Indian Express ·
Politics
El Niño created hurdles to achieve 15 percent growth in Andhra Pradesh: CM Naidu
VIJAYAWADA: Chief Minister N Chandrababu Naidu directed banks to extend credit to all sectors and ensure that banking services reach every eligible beneficiary. The Chief Minister made several key suggestions at the 236th State Level Bankers’ Committee (SLBC) meeting held at the Secretariat on Wednesday.
The Chief Minister observed that some banks were lagging significantly in extending loans and said the SLBC meetings would have meaning only if the targets were achieved.
He reviewed the credit flow to various sectors, including agriculture, and enquired with bankers about the action taken on issues raised at the previous SLBC meeting.
Bankers informed the Chief Minister that action had been taken on nine out of the 13 issues discussed in the previous meeting.
The Chief Minister noted that although the volume of lending to MSMEs had increased compared to the previous period, credit disbursement was still below the expected level.
During the review, the Chief Minister said a target of achieving 15 per cent economic growth was set, but El Niño has created difficult conditions for the government, which he said is trying to overcome the challenges. He urged banks to ensure adequate credit to tenant farmers. The Chief Minister appreciated women members of Self-Help Groups (SHGs) for setting an example in loan repayment and said they had emerged as No.1 in the country in this regard.
More than 99 per cent of women borrowers are repaying their loans on time, while only 0.67 per cent have fallen behind in repayment, he said. He asked banks to consider a One-Time Settlement (OTS) mechanism to achieve 100 per cent recovery from the remaining borrowers.
The Chief Minister also directed officials to draw an action plan for extending loans to TIDCO houses into operation at the earliest.
He stressed the need for greater vigilance against cyber fraud and called for coordination with the DGP’s Cyber Security Cell.
Banks and departments should focus on statewide awareness programmes on cyber fraud and financial literacy, he said. As the NALA Act has been repealed, the Chief Minister directed that no one should be inconvenienced or denied loans in the name of NALA requirements.
The bank officials said Bank credit in Andhra Pradesh has gained momentum, with total advances reaching `10.28 lakh crore as of June 2026.
Agriculture received substantial credit support, with agricultural loans standing at `3.98 lakh crore as of June 2026, higher than the previous year.During the first quarter of the 2026-27 financial year, loans amounting to `63,686 crore were disbursed to 2.33 lakh MSMEs up to June 2026.
Under PM Surya Ghar, 1,57,703 applications had been received as of September 10, with banks sanctioning loans worth `3,081 crore. All banks have provided a complete exemption from service charges on loans extended to women Self-Help Groups.
As of September 10, a total of `18,621 crore in loans had been disbursed to SHGs.Significant progress was also recorded under PM MUDRA loans in the State.
