Priority sector to get ₹1.44 lakh crore; non-priority sector lending at ₹41,681 cr.
The annual credit plan of the State for the current financial year has been fixed at ₹1.86 lakh crore with priority sector lending pegged at ₹1.44 lakh crore, marking 77% of the total credit plan.
Credit to agricultural activities takes a major chunk of the priority sector lending at ₹75,977.72 crore estimated for 62.36 lakh accounts. Of this, ₹59,440.44 crore has been earmarked for crop production, maintenance and marketing and another ₹16,537.28 crore for investment credit and allied activities.
Agricultural term loans for infrastructure are pegged at ₹3,895.61 crore and those for ancillary sector at ₹11,668.38 crore, taking the total agriculture credit to ₹91,541.71 crore spread over 63.67 lakh accounts and constituting 49.2% of the total credit plan. Credit for the MSME sector is estimated at ₹39,361.16 crore amounting to 21.16% of the credit plan.
Medium scale enterprises are set to get credit of ₹15,275.44 crore and small scale enterprises ₹12,046.76 crore while lending to 5.01 lakh accounts pertaining to micro enterprises will be ₹12,038.66 crore. Education loans at ₹2,347.85 crore, housing loans – ₹8,640.24 crore, social infrastructure – ₹1,179.06 crore and renewable energy – ₹407.97 crore also received significant attention in the annual credit plan which projected other priority sector requirements at ₹876.07 crore.
The 29th meeting of the State Level Bankers Committee which released the annual credit plan in the presence of Finance Minister T. Harish Rao projected the requirement of non-priority sector at ₹41,681.54 crore constituting 22.41% of the total credit plan. Mr. Harish Rao exhorted the bankers to ensure timely disbursal of farm credit to farmers.
The Minister outlined the innovative measures launched by the State government for farmers’ welfare and said ₹7,360 crore was recently credited into the accounts of over 61 lakh farmers within a week. Chief Minister K. Chandrasekhar Rao had issued instructions that the amounts under the Rythu Bandhu scheme should not be diverted and banks should take steps to ensure that the amounts were credited into savings accounts of farmers.
Stressing the need for timely release of farm loans, the Minister said it would go a long way in meeting the requirements like purchase of essentials like seed, fertilizer and other inputs.
Appreciating the role of banks during the COVID-19 pandemic, he wanted them to provide more Mudra loans to small businesses.
The government is encouraging cultivation of oil palm and other varieties of crops and steps had been initiated to speed up setting up of special food processing zones.
SLBC president Om Prakash Mishra, RBI regional director Nikhila and Nabard chief general manager Y. Krishna Rao were among those who represented the banking sector.
Principal Finance secretary K. Ramakrishna Rao, Panchayat Raj principal secretary Sandeep Kumar Sultania, Finance Department special secretary Ronald Ross and other senior officials attended the meeting.