Upgrade Policies as India Will Challenge China, US with Economic Reforms: Andhra CM Tells Banks

Andhra Pradesh Chief Minister N Chandrababu Naidu on Tuesday appealed to banks to upgrade their policies to suit next generation needs as "India is going to throw a challenge to China and the US with next generation economic reforms." Addressing the 232nd State Level Bankers Committee (SLBC) meeting, the chief minister said both banks and public policies should not dictate terms to people, but engage with them through people-friendly policies.

"Banks should upgrade their policies to suit the next generation needs as India is going to throw a challenge to China and USA by introducing next generation economic reforms. The central government is also bringing reforms in GST to suit present needs," an official release quoting Naidu said.

Pointing to the delay in Kharif season loans to farmers, he noted that half of the crop season has lapsed and there is no use in sanctioning loans at the end of the crop season, emphasising early loans.

Further, Naidu appealed to the bankers to extend cooperation through funding for infrastructure and irrigation projects taken up by state government.

According to the CM, the state government is planning to develop Andhra Pradesh as a logistic hub to reduce the logistics cost from present 14 per cent to single digits.

He called upon the bankers to set up a financial district in the greenfield capital city of Amaravati, adding that the government is ready to allot necessary land and that banks should come forward to set up their offices.

Naidu requested the bankers to refrain from allegedly troubling Amaravati farmers in extending loans, and accord priority to extend loans to the poor and weaker sections, including farmers and tenant farmers.

The CM promised to set up a memorial park in memory of Andhra Bank founder B Pattabhi Sitaramaiah in Machilipatnam.

Meanwhile, banks extended loans worth Rs 2.48 lakh crore under annual credit plan to all sectors, including loans worth Rs 94,666 crore to agriculture, Rs 49,831 crore to MSMEs, over Rs 1 lakh crore to other sectors and Rs 985 crore to tenant farmers.