Banking – Andhra Pradesh Launches Major Credit Drive Benefiting Over One Lakh People

Banking –The Andhra Pradesh government, in collaboration with the Union Ministry of Finance and public sector banks, rolled out a large-scale credit outreach programme in Narasaraopet of Palnadu district on Friday. During the event, Chief Minister N. Chandrababu Naidu and Union Finance Minister Nirmala Sitharaman handed over loan sanction letters and cheques amounting to Rs 3,216 crore to 1,03,246 beneficiaries. The initiative was designed to improve access to institutional finance for a wide range of eligible individuals, with nearly 70,000 recipients receiving formal bank credit for the first time.

Focus on Financial Access Across Sectors

The programme covered beneficiaries from different sections of society, including around 15,000 women associated with DWCRA self-help groups, 13,355 entrepreneurs, farmers, tenant farmers, street vendors and members of the transgender community. Addressing the gathering, Chief Minister Naidu said the government’s priority is to ensure that farmers, students, women, entrepreneurs and other eligible citizens have access to affordable institutional credit. He described banks as important development partners that contribute to the state’s long-term economic progress rather than serving only as lending institutions.

Vision for Industrial Growth in Palnadu

Naidu said Palnadu has the potential to emerge as a major destination for business and investment. According to him, Andhra Pradesh has made steady progress over the past two years despite facing financial challenges earlier, with continued support from the Union government helping the state regain economic momentum. He added that several long-pending development projects, including Amaravati, the Polavaram project and the Visakhapatnam Steel Plant, are now moving forward.

Centre’s Financial Support Highlighted

Speaking about central assistance, the Chief Minister said Andhra Pradesh is expected to receive Rs 7,707 crore under the VB-GRAM G programme. He also noted that the Centre has committed financial assistance of nearly Rs 40,000 crore for the development of Rayalaseema as a horticulture hub. According to him, these investments are expected to strengthen infrastructure, create employment opportunities and support regional economic growth.

Banking Reforms Receive Appreciation

Naidu praised Union Finance Minister Nirmala Sitharaman for introducing reforms that have strengthened India’s banking sector. He said measures such as bank consolidation, the expansion of digital banking services, wider financial inclusion through the Jan Dhan Yojana and greater transparency in the taxation system have improved the overall financial ecosystem. He added that these reforms are consistent with the national objective of achieving the vision of Viksit Bharat 2047.

Strong Performance by Women’s Self-Help Groups

The Chief Minister also highlighted the contribution of women’s self-help groups in Andhra Pradesh. He said nearly 10 lakh DWCRA groups have accumulated savings of around Rs 29,000 crore while maintaining an outstanding loan repayment rate of 99.5 percent. He described this achievement as one of the strongest performances by self-help groups in the country and said it reflects the financial discipline demonstrated by women across the state.

Expansion of Credit Outreach Programme

Naidu announced that similar credit outreach programmes will soon be conducted in six more districts. He further stated that the initiative will become a regular exercise, with programmes planned every three months to strengthen financial inclusion and improve access to institutional banking services throughout Andhra Pradesh.

Sitharaman Highlights Inclusive Banking

Union Finance Minister Nirmala Sitharaman said the Central government has been working to ensure that banking services reach every village in the country, in line with Prime Minister Narendra Modi’s vision. She recalled that when she assumed office, banks were dealing with high levels of non-performing assets while small entrepreneurs often found it difficult to secure loans. She said guarantee-backed lending schemes introduced by the government have encouraged banks to extend credit more confidently to first-time borrowers and small businesses. According to her, banks are now proactively reaching potential borrowers instead of waiting for applications.

CSR Initiatives Announced During the Event

Several corporate social responsibility initiatives were also launched alongside the credit distribution programme. Union Bank of India donated an ambulance worth Rs 42.16 lakh to the Government Hospital in Piduguralla. NABARD provided two mobile demonstration vans valued at Rs 25 lakh to the District Cooperative Central Bank. Additionally, 301 bicycles worth Rs 17.80 lakh were distributed to girl students, while a regional rural bank presented two battery-operated vehicles worth Rs 14 lakh to the Tourism Department. The Chief Minister also distributed tricycles to persons with disabilities during the programme. Andhra Pradesh Finance Minister Payyavula Keshav, Members of Parliament Lavu Sri Krishna Devarayalu and Bhashyam Ramakrishna, legislators and senior banking officials were present at the event.