AP CM irked over non-disbursal of loans by banks

Andhra Pradesh Chief Minister N Chandrababu Naidu today slammed bankers over laxity in disbursal of loans to beneficiaries of various government schemes and set October 31 as the deadline to mend their ways.

He also expressed displeasure over the functioning of some private sector banks and warned that the government would advise people not to transact with such banks.

"I am receiving various complaints. Your actions are bringing disrepute to the government. You have to mend your ways by October 31," the chief minister told bankers at the State-Level Bankers Committee's meeting at the secretariat.

Naidu was particularly irked over non-disbursal of loans despite sanction letters.

"What is your problem in disbursing the loan when a sanction letter is issued (by government)? In some cases, you are charging the beneficiaries heavily in the form of various fees," he said.

When a government official pointed out that a bank collected Rs 12,000 as "inspection charge" from a farmer for a loan of Rs 30,000 to purchase buffaloes, the chief minister asked him to give details so that action could be taken against the bank.

"Some private banks have not opened even one account in the name of farmers. It is not right on their part to stay away from the development process after deriving benefits from the government. If this continues, we will ask people not to deal with such banks," the CM said.

He also announced that an 11-member coordination committee would be set up with bankers and state government officials to ensure hassle-free disbursement of loans.

Agriculture minister Somireddy Chandramohan Reddy, SLBC convener G S V Krishna Rao and Andhra Bank Executive Director A K Rath were among those attended the meeting.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

TAGS:

Economy