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Andhra CM directs banks to step up credit support across sectors
Amaravati, Sep 16 (PTI) Andhra Pradesh Chief Minister N Chandrababu Naidu on Wednesday directed banks and officials to ensure adequate lending to all sectors and sections of society, saying achievement of targets was essential for SLBC meetings to serve their purpose.
The chief minister, addressing the 236th State Level Bankers’ Committee (SLBC) meeting, said banks should increase lending to Micro, Small and Medium Enterprises (MSMEs), tenant farmers and other sectors while ensuring that credit reaches those who need it.
“Banks should provide loans in a manner that strengthens all sectors and sections of society, and the purpose of conducting SLBC meetings will be served only when the targets set are achieved,” Naidu said in an official release.
He noted that the overall amount of loans extended to MSMEs had increased compared to the past, but said the level of loan sanctioning was still below expectations. Some banks were also lagging considerably in extending credit, he added.
Naidu said the state aimed to become the number one in the country under the PM Surya Ghar scheme and that this could be achieved only with banks extending loans on a large scale.
He said the government had set a target of achieving 15 percent economic growth, but the state was facing difficult conditions due to El Nino and was working to overcome its adverse impact.
Naidu also asked banks to come forward to provide adequate credit to tenant farmers.
Referring to women from self-help groups (SHG), the CM said they were setting an example in loan repayment and that Andhra Pradesh SHG women had secured the top position in the country in this regard.
More than 99 percent of women who had availed loans were repaying them on time, while only 0.6 percent were failing to repay, he said.
The chief minister asked banks to focus on recovering loans from the women who had defaulted and consider the one-time settlement mechanism for this purpose.
He also reviewed the action taken on issues raised during the previous SLBC meeting. Bankers informed him that action had been taken on nine of the 13 issues discussed earlier. Naidu said it was not appropriate for the issues and targets discussed at the previous meeting to remain unresolved.
As of June 2026, banks in Andhra Pradesh had extended total loans and advances of Rs 10.2 lakh crore. Of this, Rs 3.9 lakh crore was provided to the agriculture sector, higher than the previous year.
During the first quarter of the 2026-27 financial year up to June, banks disbursed Rs 63,686 crore in loans to 2.3 lakh MSMEs.
Under the PM Surya Ghar scheme (under the Ministry of New and Renewable Energy), over 1.5 lakh applications had been received as of September 10, with loans worth Rs 3,081 crore sanctioned.
Banks have completely waived service charges on loans to women’s self-help groups. As of September 10, Rs 18,621 crore had been disbursed to SHGs.
Significant progress was also reported under PM Mudra, with banks sanctioning loans worth Rs 13,757 crore against over 4.4 lakh applications as of September 10.
Naidu further directed officials to prepare and implement an action plan at the earliest for providing loans for houses constructed under the Andhra Pradesh Township and Infrastructure Development Corporation (TIDCO) housing programme.
Further, he stressed the need for vigilance against cyber fraud and directed banks to coordinate with the DGP’s Cyber Security Cell.
The CM also called for greater focus on cyber-fraud prevention and financial literacy awareness programmes across the state.
Officials also briefed Naidu on the progress of construction of several bank offices at the Capital Amaravati Financial Hub. He suggested that banks expedite the construction works.
Naidu decided that from the next SLBC meeting onwards, the performance of banks, districts and departments would be reviewed based on outcomes, with the results analysed bank-wise, district-wise and department-wise. PTI MS SA
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.
