Banks agree to disburse 7,000 cr. crop loans
average of Rs.1,000 crore a day will be disbursed till the month-end to
achieve 100 per cent target
About 50 p.c. of crop loans to the tune of Rs.7,019 crore was disbursed
up to August 15
YSR urges bankers to meet the total target of 32,500 cr. for
agriculture sector for 2009-10
MONEY MATTERS: Chief Minister Y. S. Rajasekhara Reddy at the State
Level Bankers Committee meeting in Hyderabad on Monday. -
HYDERABAD: With different parts of the State receiving rain and sowing
picking up, bankers have agreed to disburse crops loans at an average
of Rs.1,000 crore a day till the month-end to achieve 100 per cent
target of Rs.14,100 crore for kharif 2009.
About 50 per cent of crop loans to the tune of Rs.7,019 crore were
disbursed up to August 15 and the banks have agreed to disburse a
similar amount in the next seven days.
assurance given by bankers at a Special State Level Bankers’ Committee
meeting on Monday assumes significance against the backdrop of Chief
Minister Y.S. Rajasekhara Reddy consistently refusing to concede the
demand of the Opposition parties to declare the State drought-affected
on the ground that it would affect the credit flow to farmers.
Responding to Dr. Reddy’s request to ensure 100 per cent by month-end,
R. S. Reddy, CMD Andhra Bank and President SLBC, said bankers shared
his concern and expressed confidence that the target could be achieved.
He said that the disbursal would be monitored on a daily basis with
various bank heads.
Earlier addressing the meeting, the Chief Minister said fortunately
there has been good rain for the past 10 days and cautioned that any
shortcoming in coming to the aid of the farmer would pose a threat to
his very survival.
During a review he had with officials on August 2, it was found that
crops loans only to an extent of 16 per cent of the kharif target were
disbursed. With sowing and lending going hand-in-hand, the credit flow
reflected bad rainfall situation then. He said officials had told him
that lending would have come down substantially had the Government
Lauding the SLBC for rendering an extremely good performance in loan
disbursement for the past five years, he asked the bankers to step up
loans under Indira Kranthi Pathakam for allied activities like sheep/
goat rearing, poultry, dairy and fisheries. He said that only Rs.1,200
crore of the targeted Rs.10,200 crore under IKP was disbursed and
wanted the remaining amount to be lent during September and October.
Assuring that Government would help in recovery of the loans, he urged
the bankers to meet the total target of Rs.32,500 crore for agriculture
sector for 2009-10, including Rs.9,000 crore for Rabi.
also wanted them to increase the lending for tenant and new farmers.
Dr.Reddy said that the State would take up with the Centre the need for
extending the crop insurance up to September 15 for crops like
Chairman R.S. Reddy has asked various bankers to sensitise all the
branch managers to review the situation in their service areas.