Hyderabad: Bhatti asks banks to extend loans to people as social responsibility

Hyderabad : Deputy Chief Minister Mallu Bhatti Vikramarka has called upon bankers to recognise extending loans to people as their foremost social responsibility and sought their cooperation in taking forward in the State agriculture and allied sectors.

Addressing the 40th quarterly meeting of the State-Level Bankers’ Committee here on Thursday, along with Agriculture Minister Tummala Nageswara Rao, Bhatti--who is also Finance minister--said that negligence in sanctioning loans to farmers would force them to approach private money lenders; it could land them in debt trap because of high interest and loan burden. It could even lead to extreme step of farmers’ suicides.

Emphasising that bankers should adopt a humanitarian approach towards farmers, he said housing and education loans should also be accorded priority. ‘The government has taken agriculture as the priority sector in line with the spirit of IndirammaRajyam. Under the previous government, accounts of many farmers had become irregular; measures should be taken to sanction fresh loans to them’.

Referring to plight of Emu farmers who suffered losses, he asked bankers to extend one-time settlement to those farmers who availed loans. Similarly, unemployed should be given a helping hand in sanction of loans for self- employment; it is not fair to insist on mortgage of assets for sanction of loans to farmers and unemployed youth. In line with the government’s objective to make self-help groups of women as crorepatis , bankers should sanction loans generously to SHGs.

Recalling that education loans and Kisan credit cards were started when he was a director in Andhra Bank, Bhatti said but even after 20 years there was no progress in sanction of those loans.

Nageswara Rao said any crisis in the agriculture sector would impact food security; ‘it is important to encourage farmers. The government is working to set right damaged institutions; bankers should align their functioning to achieve the priorities laid down by the government’. He said milk production in the State was not in tune with the demand and banks should give loans to farmers coming forward to set up dairy units.