Banks Must Support MSMEs: CM.

 

**231st SLBC Meeting Chaired by CM Chandrababu Naidu**  

**Credit Plan of Rs. 6.6 Lakh Crore Unveiled for 2025–26**  

**22% Increase Over Last Year’s Plan**  

**Multi-Thousand-Crore Projects Coming to the State**  

**CM Urges Bankers to Extend Full Support**  

**Banks Must Support MSMEs: CM**

Amaravati, April 29, 2025 (prajaamaravati): Chief Minister N. Chandrababu Naidu stated that Andhra Pradesh is undertaking massive initiatives over the next four years with a focus on development, wealth creation, and poverty eradication. While aligning with the Swarnandhra Vision-2047, the government is prioritising projects and goals to be completed by 2029. 

Addressing the 231st State-Level Bankers’ Committee (SLBC) meeting at the Secretariat on Tuesday, the Chief Minister urged banks to extend full support and exceed the targets set under the 2025–26 credit plan.

After reviewing the achievements of FY 2024–25 with banking officials, the Chief Minister outlined the goals for 2025–26. He commended bankers for surpassing 100% of last year’s targets, placing Andhra Pradesh at the forefront in South India. During the meeting, the Chief Minister unveiled the AP Annual Credit Plan for 2025–26. He emphasized that bankers should consider how they can contribute to the growth of DWCRA women, tenant farmers, SCs, STs, BCs, and minorities.

**SLBC Meetings Aim to Mobilise Financial Support:**  

The Chief Minister noted that the primary reason for holding SLBC meetings frequently during his tenure is to garner financial backing from banks for state development and improved living standards. He recalled that the undivided Andhra Pradesh gave priority to services and industries, but after bifurcation, with Andhra Pradesh becoming an agriculture-dependent state, the focus has shifted. The state is also strengthening allied sectors of agriculture through various initiatives.

**Bank Cooperation Is Key to Progress:**  

The CM stressed that bank support is essential for the growth of any sector in line with demand. Massive projects are underway across different sectors, and financial assistance is critical. He highlighted the government’s initiative to promote MSMEs and establish Ratan Tata Innovation Hubs in every constituency under the vision of "One Entrepreneur per Household." He reiterated the government’s Zero Poverty–P4 initiative to eliminate poverty and reduce inequality by 2029. The Public-Private Partnership (PPP) model is being widely implemented to create wealth and infrastructure.

**Balanced Regional Development Is Our Policy:**  

The CM noted that Visakhapatnam is making remarkable progress economically and industrially, while Amaravati is being positioned as a hub of future opportunities. He added that Rayalaseema is being developed as a horticulture hub and a center for electronics manufacturing. He urged bankers to focus on the Petro Corridor and emphasized the need to provide direct loans to fishermen, who are losing out due to middlemen. He said there are abundant opportunities in the blue economy that can be harnessed with banking support.

**Inclusive Lending Across All Sections:**  

In line with the vision of “One Entrepreneur per Household,” the credit plan is being implemented. Bankers assured the CM that this year’s targets would be exceeded. They are giving special emphasis to women entrepreneurs and are actively lending to self-help groups. Focus is also being placed on education and housing sectors.

**Exceeding Credit Plan Targets:**  

While the credit plan target for FY 2024–25 was Rs. 5.4 lakh crore, banks disbursed Rs. 6.83 lakh crore—127% of the target. Of this, Rs. 4.14 lakh crore went to the priority sector and Rs. 2.68 lakh crore to the non-priority sector.

**Agriculture Sector:**  

For agriculture, the target was Rs. 2.64 lakh crore, but disbursements stood at Rs. 3.07 lakh crore—116% of the target. Of this, Rs. 1.69 lakh crore was disbursed in the Kharif season and Rs. 1.37 lakh crore in the Rabi season.

**MSMEs:**  

The MSME sector, which is a high priority for the state, saw disbursements of Rs. 95,620 crore against a target of Rs. 87,000 crore—110% achievement. This includes Rs. 49,552 crore for micro enterprises, Rs. 27,632 crore for small enterprises, Rs. 18,138 crore for medium enterprises, and Rs. 298 crore for other segments.

**Finance Minister Questions Declining Growth Rate:**  

Finance Minister Pyyavula Keshav questioned bankers on the declining year-on-year growth rate in credit plan implementation. While growth was 133% in 2021–22, 163% in 2022–23, and 138% in 2023–24, it dropped to 127% in 2024–25. He sought an explanation.

**2025–26 Credit Plan Details:**  

The total AP Annual Credit Plan target for FY 2025–26 has been set at Rs. 6.6 lakh crore—a 22% increase over the previous year’s Rs. 5.4 lakh crore. The agriculture sector target is Rs. 3.06 lakh crore, and MSMEs have been allocated Rs. 1.28 lakh crore. The total for the priority sector is Rs. 4.58 lakh crore, and Rs. 2.02 lakh crore for the non-priority sector.