Loan waiver promises of TRS, TDP irk bankers

HYDERABAD: The focus of the 183rd and last State Level Bankers Committee (SLBC) meeting in the undivided Andhra Pradesh was on the promises of the waiver of crop loans for the farmers by both TRS and TDP in their election manifestos and their announcements that the first file to be signed by the CM-designates of both the states would be the one pertaining to crop loan waiver.

Many bankers, who participated in the meeting, expressed their apprehensions pertaining to waiver of crop loans and emphasised the need for clear guidelines in regard to bank loan waivers for farmers who are eligible, time frame, etc.

The total loans issued to agriculture sector in 2013-14 stood at `1,37,176 crore of which, `87,612 crore is the share of the truncated Andhra Pradesh and `49,564 crore of Telangana.

However, SLBC president and Andhra Bank CMD CVR Rajendran felt that it was premature to further discuss the mater as the governments of both the states, which will take office in a few days, would be taking up the issue and also announcing their policies and strategies including crop loans waiver. At the same time, he wanted all the bankers to be ready, once the respective governments make their intentions clear on the issue.

It was felt that it would be a tough time for the bankers in the coming days as they would be under tremendous pressure with farmers coming to them seeking fresh loans for Kharif season but giving no clarity on repayment of loans taken earlier.

Chief secretary PK Mohanty, chief guest, commended the performance of the banks which had surpassed the target set to them for loans to priority sector.

At the same time, he explained the hardships faced by the farming community on account of natural calamities such as drought, cyclone and floods in the last five years. 'Banks need to come forward to protect the interests of the farmers,' he stressed.

Chief secretary-designate of Andhra Pradesh IYR Krishna Rao, while commending the work of the banks in the last fiscal, said that in coming days debt waiver would be the most important issue that need to be tackled for the bankers, as it had featured prominently in the manifestos of both the parties which came to power in Telangana and Andhra. Some action plan in that regard needed to be made, he said.

SLBC president CVR Rajendran said long period of agitation during the intervening period of 182nd and the 183rd meetings of SLBC had its impact on the banking activities right from implementation of the schemes to growth in business and recovery of dues and most importantly the overall economic development of the state.

'However, with the formation of two states, ample opportunities are created where banks have to play a key role in the economic development of both the states and its people,' he said.

According to him, the credit deposit ratio in the state continues to be one among the highest in the country at 116.63 percent. The priority sector advances at the end of March stood at Rs 2,39,867 crore, constituting 50.86 percent of ANBC as against the regulatory norm of 40 percent.

Agriculture advances outstanding stood at Rs 1,37,176 crore, constituting 29.09 percent of ANBC as against the norm of 18 percent. Total credit outstanding under MES sector is Rs 55,603 crore as on March 31,2014.

'Banks have collectively surpassed the annual credit flow target of Rs 99,894 crore under priority sector with performance of Rs 1,04,347 crore in spite of continued disturbances in the state,' he said while emphasising the need for immediate government attention on integration of lands records (AP Wetland Project), recovery of bank dues and improvement of recovery culture, amendment of AP VAT Act, 2005 - affecting bankers in the State, launching of state credit plan for the current fiscal.

He congratulated State Bank of Hyderabad on being assigned SLBC convenorship of Telangana state by RBI. The SLBC responsibility for the residuary state of Andhra Pradesh remains with Andhra Bank.

Bankers Meet Naidu

Later in the night, some of the bankers called on TDP chief N Chandrababu Naidu at his residence here and expressed their views on farm loan waiver and sanction of fresh loans for Kharif. Naidu, while promising to consider their views, said he would provide clarity on the issue at the next meeting with Seemandhra bankers.

SBH Named SLBC Convenor for T-state

Hyderabad: With the state bifurcation drawing to a close, the Reserve Bank of India (RBI), in a notification issued on Thursday has appointed State Bank of Hyderabad (SBH) as the convenor of the State-Level Bankers' Committee (SLBC) for Telangana state and Andhra Bank for the residuary state of AP.

'It has been decided to assign the SLBC convenorship of Telangana state to SBH. The SLBC responsibility for the residuary state of AP has been retained with the Andhra Bank,' RBI said in its notification.

The primary mandate of SLBC convenor banks is to ensure implementation of government schemes besides monitoring compliance with priority sector targets by banks. SLBC convenes a state-level meet every 3 months.