CM YS Jagan Asks Banks to Play More Pro-active Role

 - Sakshi Post

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy called on the bankers to adopt a positive approach towards educational and housing sectors and move ahead with a proactive action plan for extending loans as the two sectors for socio-economic development.

Addressing the 222nd State Level Bankers Committee (SLBC) meeting here on Friday, the Chief Minister expressed displeasure over the banks extending loans up to 42.91 % and 33.58 % only of targets fixed for the educational and housing sectors respectively in the present fiscal.  

He said that the Government has so far distributed 30.75 lakh house sites free of cost to women and the necessary sand is supplied freely for the construction of houses while steel and cement are being supplied at subsidy rates. Reminding the bankers that they have agreed in the last meeting to provide a loan of Rs. 35,000 each for the beneficiaries additionally at 3 percent interest which would be reimbursed by the Government, he asked them to provide loans for the rest of the beneficiaries who are left over.

Government will begin construction of an additional three lakh houses in April, he said, adding that totally 30.75 lakh houses will be built for the poor. He asked the bankers to extend loans to all the beneficiaries saying that the worth of the houses would go up to Rs. 5 lakh to Rs.10 lakh each once they are ready. In this context, bankers should become proactive and extend more loans to the beneficiaries, he suggested. 

Speaking about the short term crop loans extended to the farmers in the agricultural sector, the Chief Minister said that targets were reached up to 83. 36 % only in this regard and bankers should also concentrate on achieving the targets fully.

He said that only Rs. 1126 crore was provided as loans to tenant farmers in the first nine months of the present fiscal as against the target of Rs. 4000 crore loans to 1,63, 811 tenant farmers. Bankers must stand by the tenant farmers and extend them loans liberally as Rythu Bharosa is being implemented for them and all the details are being digitized and details of the cultivation are being e-cropped. Higher amounts of loan should be granted to the tenant farmers also as per the details available with the bankers. 

He also said that while banks are paying only 4 percent interest on the savings of women’s self help groups, they are collecting more interest on the loans granted to them. The Chief Minister asked the bankers to reconsider it and pay more interest on savings of women’s groups. 

Lauding the bankers for extending loans liberally to petty traders, he asked them to display the same enthusiasm and stand by them in future also supporting the Jagananna Thodu. At a time when the Government is trying to change the rural landscape through RBKs, digital libraries, English medium schools, village and ward secretariats, skill development centers in all assembly constituencies and a skill development University for improving the skills of the youth and make them stand on their own, it is a must for banks to play more pro-active role and encourage the changing economic scenario.  He said banks should play key role in the building these institutions.

Mentioning about the success of the Global Investors Summit at Visakhapatnam that resulted in the possible investments worth Rs.13,05,663crore from 352 MoUs which would provide employment to 6,03,223 persons, he appealed to the bankers to come forward to extend loans to the entrepreneurs and the ancillary MSMEs (Micro, Small and Medium Enterprises) to achieve solid economic growth and put the State on the development path.  

Chief Secretary Dr. K.S. Jawahar Reddy, Special Chief Secretaries Ajay Jain (Housing), Y Sri Lakshmi (MA&UD), Finance Secretary KVV Satyanarayana, Minority Welfare Secretary A. Md. Imtiaz,, AP TIDCO MD Ch Sridhar, Agriculture Commissioner CH Harikiran, APIIC VC & MD G. Srijana,  Union Bank of India MD & CEO Manimekhalai, NABARD CGM MR Gopal and top officials of various banks were present.  

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