Naidu urges banks to ensure credit support for agriculture, MSMEs

Chief Minister N. Chandrababu Naidu, who chaired the 233rd and 234th State Level Bankers’ Committee (SLBC) meetings at the Secretariat on Friday, emphasised on accelerated credit support for agriculture, MSMEs, and renewable energy sectors.

Mr. Naidu stressed that no citizen should be forced to rely on private moneylenders, urging banks to ensure easy access to institutional finance. Special focus was placed on equitable development, with loans to SC, ST, and BC communities highlighted as essential.

Banks have to act as development partners, providing seamless institutional finance to strengthen agriculture, MSMEs, renewable energy, and entrepreneurship, reflecting Andhra Pradesh’s commitment to equitable and sustainable growth, he said, adding,  “We envision Amaravati as a hub for financial institutions.’’

The Chief Minister called for generous funding to the renewable energy sector, noting that both the Centre and the State are prioritising investments, with DISCOMs providing counter-guarantees.

Mr. Naidu also announced measures to strengthen Farmer-Producer Organisations (FPOs) and replicate the success of DWCRA groups, while resolving pending TIDCO housing loan issues and reducing multiple charges on DWCRA accounts. He alleged that systems had gone off track during the previous regime, with large-scale borrowing at high interest rates. “With credibility and strong branding, loans can be raised at lower interest rates. That is why we are giving top priority to restoring credibility,” he said.

Credit plan

The Chief Minister reviewed the implementation of the Annual Credit Plan 2025–26. Bankers reported disbursement of ₹2.96 lakh crore to agriculture and allied sectors, ₹1,490 crore to tenant farmers, and ₹95,714 crore to MSMEs across the State. 

Mr. Naidu urged banks to support natural farming and entrepreneurship initiatives. Highlighting the government’s vision for inclusive growth, he reiterated the “One Family–One Entrepreneur” policy, aiming to create five lakh women entrepreneurs. 

He also said that the government was streamlining land records and issuing QR-coded Pattadar Passbooks, recommending banks adopt similar QR-enabled systems for accounts.

Support for startups was another key discussion point. Various banks, including Union Bank, SBI, Bank of Baroda, Canara Bank, Punjab National Bank, Indian Bank, and HDFC Bank, are backing the Ratan Tata Innovation Hub across multiple cities in Andhra Pradesh. Union Bank, as lead bank, contributed ₹10 crore from its CSR funds for the initiative.

The SLBC meetings were attended by Ministers Payyavula Keshav and Kondapalli Srinivas, Chief Secretary K. Vijayanand, senior bankers, RBI and NABARD officials, and representatives of the National SC and ST Commissions.