Bankers not sanctioning loans

Visakhapatnam: The bankers are not sanctioning loans for self-employment and welfare programmes under various schemes. Though, Chief Minister N Chandrababu Naidu’s issued warnings at the state-level bankers meeting, there is no improvement at the branch level in the district as majority of the bank branches are not cooperating with the government for implementing flagship programmes. The ministers, too, reportedly warned that they withdrew the deposits from the banks in this regard.

Majority of the banks are not even sending their senior and executive rank officials to the district level review meetings. The banks are sending junior and branch level managers to the meetings and they are failing to address the issues being raised by the elected representatives and government officials in the meetings. 

Both MPs K Haribabu of Visakhapatnam and M Srinivasa Rao of Anakapalle expressing their dissent over the bankers directed the district administration to write letters to the RBI, CMDs of the banks and also to the Finance Secretary to direct the banks to send senior officials who are able to address the issues in the meetings.

There are 755 branches of all the banks in the district. The Central government is insisting the banks to sanction loans under various schemes, including MUDRA, Start-Up India, Make in India, loans for PMAY houses and several other schemes, while the State government is exerting pressure on the  banks to issue crop loans, waiving of farming loans and loans for self-employment schemes under various welfare corporation, including Kapu Welfare, SC/ST Welfare, Brahmin Welfare and Minority Welfare.  

According to MP K Haribabu, out of 755 bank branches, the banks sanctioned loans to 342 worth Rs 88 crore in January 2018. “If, each branch sanctions at least one loan to SC, ST and women, there will be over 2,000 loans have to be sanctioned. It indicates the banks are not cooperating with the government flagship programmes.

In order to increase the lifestyle of the vendors, including vegetable, fish and other small traders, who are daily visible in the streets, the Central government started MUDRA scheme. However, the bankers are not having at least knowledge on the scheme,” Haribabu said.

According to the official statistics, all the banks in the district achieved 24 per cent as against the target has been given by the district administration for sanction of loans under various schemes and to the priority sector. As the financial year is ending in another 50 days, the district administration urged the bankers to take positive note to reach the targets.

By VKL Gayatri