Banks in Andhra disburse Rs 26,759cr

The banks in the state have surpassed the annual credit plan consecutively for two years, and so far this year they disbursed Rs 26,759 crore as against the target of Rs 37,000 crore, said K Ramakrishnan, chairman and managing director of Andhra Bank and president of the State Level Bankers' Committee (SLBC).

At the SLBC's meeting held here on Friday, he said that the credit deposit ratio (CD) of all the banks in the state as on September 3, 2006, was 82.50 per cent as against the RBI norm of 60 per cent, and the CD ratio in all the districts in the state was more than the RBI norm of 60 per cent except in Visakhapatnam district.

"Andhra Pradesh is ranked third in India, after Tamil Nadu and Maharashtra in CD ratio. In rural areas, the state is ranked first with the CD ratio at 115.70 per cent, against the all-India average of 56.40 per cent," he said.

Stating that the outstanding agricultural advances stood at Rs 28,189 crore at the end of September 2006, as against the outstanding balance of Rs 16,128 crore as on March 31, 2004, achieving 75 per cent growth, Ramakrishnan said that the banks were hopeful that the agriculture credit would be doubled by the end of March 2007.

Under agricultural term loans, he said, an amount of Rs 2,863 crore was disbursed up to December 15, 2006, as against the target of Rs 4,870 crore, achieving 59 per cent.

"With regard to the coverage of new farmers, the banks have extended financial assistance to 3.15 lakh new farmers during the 2006 kharif season against the target of 3 lakh new farmers. During the last two years and eight months, a total of 18.92 lakh new farmers have been financed against the total target of 12.58 lakh for three years ending March 31, 2007," he informed.

Later, complimenting bankers for their initiative in extending financial assistance to the government's progressive policies for the economically-weaker sections, Chief Minister YS Rajasekhara Reddy urged the bankers to focus on micro irrigation, food processing and agri allied activities to uplift the rural economy.