‘If the party delivers on its promise, then it may prove detrimental to the interests of the banks’. In Krishna district, the total outstanding dues are above Rs. 9,137 crore.
Telugu Desam Party’s poll promise of waiving crop loans has badly hit recoveries leaving bankers worried about recovering all outstanding loans in the residuary State of Andhra Pradesh.
The total outstanding agriculture loans are to the tune of Rs. 88,000 crore in 13 districts of Seemandhra. Of this, the crop loans alone are worth Rs. 34,200 crore, gold loans (agriculture) – Rs. 20,200 crore and outstanding agriculture term loans – Rs. 1500 crore. The dues include loans disbursed to SHGs and indirect finance working out to Rs. 25,000 crore.
The crop loan recoveries failed to cross even one per cent mark in the last three months in three coastal districts of Guntur, East and West Godavari, says Godavari Grameena Bank (GGB) chairman M. Gopalakrishna.