Central Bank Vijayawada farm loans up 34%

The Vijayawada region of the Central Bank of India, comprising 10 districts, achieved a 34 per cent increase in disbursal of advances in agriculture sector, with loans given to 36,718 pooling up to Rs 159 crore as on December 31 this fiscal as against Rs 119 crore on the same date in 2003-04, said G Balarama Murthy, regional manager.

In an interview to Business Standard, he said Rs 64 crore had been advanced to 22,148 farmers this fiscal.

He said the bank was operating 50 branches in the eight coastal Andhra Pradesh districts from Vizianagaram to Nellore and the Rayalaseema districts of Chittoor and Cuddapah.

Murthy said the advances in the region stood at Rs 457 crore on December 31, 2004 as against Rs 384 crore recorded on the same date in 2003. The deposits at the end of third quarter of the current fiscal touched Rs 465 crore compared to Rs 340 crore at the end of the same quarter in 2003-04, an increase of 37 per cent.

In accordance with the Reserve Bank of India (RBI) and the central government directions, the bank, in a special thrust to agriculture, rescheduled 4,325 crop loans amounting to Rs 15 crore into term loans.

The branches in Vijayawada region had so far issued Central Kisan Credit Cards to 31,000 farmers involving an amount of Rs 76 crore and 11,000 farmers were benefited up to Rs 32 crore from the scheme during the first three quarters of 2004-05, he said.

According to him, the deposits of bank's 13 branches in Krishna district reached Rs 103.18 crore and the advances Rs 102.07 crore on December 31, 2004 (CD ratio 99) with Rs 65.75 crore allocated to priority sectors.

The loans disbursed included Rs 12.95 crore crop loans, Rs 13 crore term loans, Rs 1.14 crore loans to artisans, Rs 1.35 crore other farm loans, Rs 2.12 other priority sector loans and Rs 4.29 crore non-priority sector loans.

The saving deposits fortnight organised by the bank this month received an overwhelming response from the people. The bank is now concentrating on recovery of non-performing assets (NPAs) through compromise and the Securitisation Act, he said.