Centre praises AP for meeting banking and loan targets

Vijayawada: Finance minister Buggana Rajendranath has said AP’s target of the banking loan for the financial year 2023-24 is Rs 1.68 lakh crore, which is 20 per cent higher than that of last year’s Rs 1.40 lakh crore.

The State Level Bankers Committee met under the chairmanship of the finance minister here on Monday. The minister said Union minister Bhagwat Kishanrao Karad has appreciated the work done by the AP government in meeting the targets set by it.

The finance minister directed the bankers to provide loans to MSMEs, which provide employment. Bankers should focus more on loans for schemes related to PM Mudra and Standup India.

Rajendranath said priority should be given to the Prime Minister's Atmanirbhar Fund for Street Traders and the scheme to provide loans to small traders through PM-FMEs. Initiatives should be taken to resolve applications without delay, he said.

The minister clarified that the deposits till the end of March this year were at Rs 4,56,961 crore. In the last three months, the deposits have increased by 3.69 per cent to Rs 4,73,806 crore.

The minister said, that by the end of June, a financial assistance of Rs 517.86 crore was provided to 67,422 tenant farmers. He wants more cooperation from the bankers to reach the target set by the government in helping the tenant farmers. In connection with Jagananna Colonies, the target of providing loan facilities to those constructing houses has reached Rs 2,464.72 crore (60 per cent).

Rajendranath said most of the applications were being rejected based on CIBIL score, age and other reasons. This issue should be resolved and the government's target achieved.

He said that only Rs 4,286 crore has been lent so far through SHG Bank linkages related to SERP. A decision must be taken on reducing the interest on loans taken by Dwakra women's groups up to Rs 3 lakh.