Naidu Urges Banks to Widen Credit Reach Across Sectors in Andhra Pradesh
At the 236th SLBC meeting, Chief Minister N. Chandrababu Naidu pressed banks to expand lending to all sectors and sections, citing gaps in MSME targets and urging support for rooftop solar and tenant farmers.
Andhra Pradesh Chief Minister N. Chandrababu Naidu on Wednesday asked banks to broaden their lending across all sectors and sections of society, linking credit flow to the State's economic strength and inclusive growth.
Speaking at the 236th State Level Bankers' Committee (SLBC) meeting, he said credit must reach every segment in line with the State's development priorities. While lending to Micro, Small and Medium Enterprises (MSMEs) had improved over the previous period, disbursements remained below expectations, with some banks trailing their targets by a wide margin.
The Chief Minister said there was little purpose in holding SLBC meetings if the targets went unmet, and called for the decisions taken at such forums to be converted into measurable results.
On renewable energy, Mr. Naidu said the State aimed to lead the country in implementing the PM Surya Ghar scheme, a goal that would depend on banks extending loans on a large scale to households installing rooftop solar systems.
He noted that the State had set a target of 15% economic growth, but the effects of El Niño had created difficult conditions. His government, he said, was working to overcome these adverse factors and stay on the growth path.
Mr. Naidu also urged banks to ensure adequate credit for tenant farmers, who often struggle to access institutional finance.
He commended women members of self-help groups for their repayment record, describing them as a national model. More than 99% of women who had taken loans were repaying on time, with defaults at just 0.67%, he said.
The Chief Minister asked banks to focus on recovering loans from the small share of defaulting women and to examine a one-time settlement (OTS) mechanism to aid recovery.