There’s no free lunch, bankers tell CM
The State-level Bankers Committee (SLBC) has informed Chief Minister Kiran Kumar Reddy and the minister for Agriculture, Kanna Laxmi Narayana, that the overdraft from the farming sector is ballooning.
Members of the committee pointed out, in particular, that the mounting dues were the main obstacle to the smooth flow of credit to the sector. The CM demanded the scaling up of loans to the sector in the State.
A senior official responsible for the recovery said, “Recovery of loans as per the terms of repayment has become essential under prudential norms, lest these accounts will become Non-Performing Assets (NPAs). Increasing the magnitude of overdrafts has compelled banks to take up recovery on a serious note.” He was responding to Postnoon’s queries about the complaint of banks’ tight-fisted approach.
Kanna Laxminarayana said the agriculture department has decided to co-ordinate with the banks and farmers across the State to improve co-ordination for recovery and other issues.
The commissioner of the agriculture department has also recommended the constitution of a special team to recover agricultural advances and proposed dates when the recovery teams will visit.
The banks have also been advised to submit complete and accurate data especially with regards to overdrafts and NPA so that the SLBC will take up the issue with the government for recovery of the same.
Taking all this into consideration the Chief Minister suggested that banks have an SLBC meet in April so that there would be a detailed discussion on recoveries and also disbursement for the State.
Short term loans: Balance overdue is Rs.18,733.59 crore and in real terms the NPA is Rs.2,016.71 crore.
Term loans: Balance overdue is Rs.8,290.41 crore and the NPA in real terms is Rs.2,482.52 crore.
Total Agriculture sector: The total outstanding balance in overdue accounts is Rs.27,202.26 crore and in real terms the NPA is Rs.4,491.62 crore.
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