Chief Minister Chandrababu Naidu urged banks to expand lending across sectors and ensure banking services reach every eligible beneficiary, with a special focus on PM Surya Ghar.
Amaravati: Andhra Pradesh Chief Minister N. Chandrababu Naidu has urged banks to expand credit across sectors and ensure that banking services reach every eligible beneficiary in the state.
Addressing the 236th State Level Bankers’ Committee (SLBC) meeting at the Secretariat on Wednesday, the Chief Minister reviewed credit flow to agriculture, MSMEs and other sectors and assessed the progress made on issues raised during the previous meeting.
Naidu said SLBC meetings would serve their purpose only when the targets agreed upon were achieved. He noted that some banks were lagging significantly in extending credit and called for greater coordination between banks and government departments.
Bankers informed the Chief Minister that action had been taken on nine of the 13 issues discussed at the previous SLBC meeting.
Naidu observed that although lending to MSMEs had increased compared with the previous period, credit disbursement remained below the expected level. He called for steps to ensure adequate credit reaches eligible enterprises.
The Chief Minister also urged banks to ensure sufficient credit support to tenant farmers, particularly those who face difficulties in accessing institutional finance.
Naidu said Andhra Pradesh could emerge as the No.1 state under the PM Surya Ghar scheme only with large-scale support from banks through loans.
As of September 10, a total of 1,57,703 applications had been received under PM Surya Ghar, while banks had sanctioned loans worth ₹3,081 crore.
The Chief Minister asked banks to further accelerate lending under the scheme to help expand rooftop solar adoption across the state.
According to figures presented at the meeting, total bank advances in Andhra Pradesh reached ₹10.28 lakh crore as of June 2026, indicating continued growth in overall credit flow.
Agricultural loans stood at ₹3.98 lakh crore as of June 2026, higher than the corresponding figure of the previous year.
During the first quarter of the 2026-27 financial year, banks disbursed ₹63,686 crore to 2.33 lakh MSMEs up to June 2026.
The Chief Minister said the state had set a target of achieving 15% economic growth, while noting that challenging weather conditions associated with El Niño had created additional difficulties that the government was working to address.
Naidu appreciated women members of Self-Help Groups (SHGs) for their repayment performance.
He said more than 99% of women borrowers were repaying their loans on time, while 0.67% had fallen behind on repayments. He asked banks to consider a One-Time Settlement (OTS) mechanism to facilitate recovery from the remaining borrowers and work towards 100% recovery.
Banks have also completely waived service charges on loans extended to women SHGs. As of September 10, banks had disbursed ₹18,621 crore in loans to SHGs.
Significant progress was also reported under the PM MUDRA scheme.
As of September 10, banks had sanctioned ₹13,757 crore against 4,48,562 applications, according to officials.
Naidu called for continued support to eligible beneficiaries through timely credit delivery.
The Chief Minister directed officials to operationalise an action plan for extending loans to beneficiaries of TIDCO houses at the earliest.
He also directed officials and banks to ensure that eligible beneficiaries do not face unnecessary hurdles in accessing credit.
Following the repeal of the NALA Act, Naidu instructed officials and banks not to inconvenience applicants or deny loans on the grounds of NALA-related requirements.
The Chief Minister stressed the need for greater vigilance against cyber fraud and called for coordination between banks and the DGP’s Cyber Security Cell.
He directed banks and government departments to undertake statewide awareness campaigns on cyber fraud prevention and financial literacy, particularly to help customers identify and avoid emerging digital financial scams.
Officials also briefed the Chief Minister on the construction of various bank offices in the Amaravati Financial Hub.
Naidu directed the concerned banks to expedite construction and complete the projects at the earliest.
He further decided that from the next SLBC meeting, the performance of banks, districts and government departments would be analysed separately before the review begins.
The Chief Minister reiterated the need for stronger coordination between banks and the government to improve credit delivery, support economic activity and ensure that eligible beneficiaries across Andhra Pradesh have access to institutional banking services.
