Banks must extend credit to all sectors to strengthen State’s economy, says Chief Minister Chandrababu Naidu

Chief Minister N. Chandrababu Naidu on Wednesday directed banks to step up lending to all sectors and sections of society to strengthen the State’s economy and ensure inclusive growth.

Addressing the 236th State Level Bankers’ Committee (SLBC) meeting, Mr. Naidu said banks should ensure that credit reached all sections and sectors in accordance with the development priorities of the State.

He observed that though lending to Micro, Small and Medium Enterprises (MSMEs) had increased compared with the previous period, the level of credit disbursement was still below expectations. He pointed out that some banks were lagging considerably in achieving their lending targets.

“There is no point in conducting SLBC meetings unless the targets are achieved,” the Chief Minister said, stressing the need for banks to translate the decisions taken at such meetings into measurable outcomes.

Mr. Naidu said the State government wanted Andhra Pradesh to emerge as the country’s leading State in implementing the PM Surya Ghar scheme. This would be possible only if banks extended loans on a large scale to households seeking to install rooftop solar systems, he said.

The Chief Minister said the State had set a target of achieving 15% economic growth, but the impact of El Niño created difficult conditions. The government was working to overcome the adverse factors and remain on the growth path, he said.

Mr. Naidu also called upon banks to ensure adequate credit to the tenant farmers, who often faced difficulties in accessing institutional finance.

He praised women members of self-help groups for their record in repaying bank loans. He said SHG women had emerged as a model for loan repayment and occupied the top position nationally in this regard. More than 99% of women who had availed themselves of loans were repaying them on time, while only 0.67% defaulted on repayments, he said.

Mr. Naidu asked banks to focus on recovering loans from the small percentage of women who had defaulted and explore the possibility of a one-time settlement (OTS) mechanism to facilitate recovery.