The Hindu : Extend liberal linkage to SHGs, banks told

Online edition of India's National Newspaper
Friday, Dec 06, 2002

Southern States

Southern States - Andhra Pradesh

Extend liberal linkage to SHGs, banks told

By Our Staff Reporter

KHAMMAM Dec. 5. The District Collector, Arvind Kumar, on Thursday said that self-help groups (SHGs) were yet to get their due from bankers. Addressing a meeting of the district-level review committee of bankers here, he said as against the total credit plan outlay of Rs. 456 crores for the current financial year, the commitment given by bankers for SHGs was only Rs. 25 crores, which was not even five per cent.

He said bankers needed to own up the SHGs and their activities. Many groups were still struggling at the bank level for linkage as some branches were creating hurdles in the process. He wanted bankers to be liberal in giving linkage to groups, which were by and large maintaining a good record in repayments.

The Collector said in all 4,986 self-help groups were extended linkage and a credit of Rs. 12.57 crores was provided in the fist half of the current financial year. Still another 2,611 groups, which were equally eligible for linkage, were awaiting credit assistance from the respective banks.

Giving a bank-wise break up of eligible SHGs awaiting help, he said linkage for 526 groups was pending with the State Bank of Hyderabad, 487 with the Andhra Bank and 138 with the Nagarjuna Grameena Branch. The success of SHGs would depend on the way bankers would own up the programme.

He said crop loans for Rabi needed better attention. Since paddy cultivation in the Rabi was not to be encouraged, about 50 per cent subsidy would be given for alternative cropping pattern. He said the marble deposits

found in some of the pockets hold a great promise for the district.

The marble sector should find its mention in the annual credit plan for the next financial year. Bankers need to encourage marble processing, an activity expected to be quite profitable. The processing units should be given adequate support, he said. The administration was planning to set up a mini-industrial centre in the district for promoting marble processing units.

The Khammam MLA, Younis Sultan, said the monthly performance of banks should be reviewed by the Collector so as to plug the performance gaps. Some of the banks were yet to meet their credit plan commitments in respect of Government-sponsored programmes.

The Nagarjuna Grameena Bank Chairman, S. S. Vadhanam, the SBH AGM, C. N. Vijayendra Kumar,

the District Cooperative Central Bank General Manager, Subbaiah Chowdhury, the NABARD AGM, Y. Krishna Rao, the Andhra Bank Main Branch manager, Raj Kumar Singh, and the lead district Manager, K. Durga Varaprasada Rao, were present.

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