ROSAIAH ASKS BANKS TO STEP UP LENDING TO MINORITIES, SHGs

The Andhra Pradesh Chief Minister, Mr K Rosaiah, has asked banks to step up lending to the minorities and self-help groups (SHGs). Speaking at the 169th meeting of State Level Bankers' Committee (SLBC), Mr Rosaiah expressed dissatisfaction that the priority sector targets set for the minorities was not met by the banks.


"While 15 per cent of the priority sector lending was supposed to be extended to the minorities before March 31, 2010, only 6.41 per cent was lent. By taking measures such as opening up branches in minorities-dominated areas, banks need to step up lending,” he said.


Observing that the year 2009 was “full of agonies” with drought and floods, the Chief Minister said the position regarding conversion/rescheduling of crop loans according to the Reserve Bank of India guidelines was not satisfactory. There were many field level problems, which were yet to be resolved by banks, he said. The lending as well as distribution of smart cards to SHGs needed to be increased, he added.



The State occupied number one position in the country in SHG-bank linkages programme with an outstanding loan amount of Rs 11,000 crore to about 10 lakh groups.

In the agricultural lending, banks' finance in the State had crossed Rs 62,000 crore. While the target was met in the khariff lending, the rabi crop loan lending was at Rs 5,178 crore against the target of Rs 9,400 crore.

Source: http://www.blonnet.com/2010/03/09/stories/2010030951541900.htm