CM Naidu sets Rs 6.6 Lakh crore credit target, urges banks to drive growth

Chief Minister N Chandrababu Naidu has called on banks to extend full support to Andhra Pradesh’s ambitious development agenda, urging them to exceed credit targets and become active partners in the State’s push for economic growth, poverty eradication, and wealth creation.

Addressing the 231st State Level Bankers’ Committee (SLBC) meeting at the Secretariat on Tuesday, Naidu unveiled the AP Annual Credit Plan for 2025–26, which sets a credit target of Rs 6.6 lakh crore , a 22 percent rise from last year’s Rs 5.4 lakh crore.

Of the new target, Rs 3.06 lakh crore has been allocated to agriculture and Rs 1.28 lakh crore to the MSME sector. The priority sector will receive Rs 4.58 lakh crore, while the non-priority sector has been earmarked Rs 2.02 lakh crore.

Naidu said the government is working on dual timelines: the long-term Swarnandhra Vision 2047 and concrete milestones to be achieved by 2029. “Progress in any sector requires robust financial backing. We are planning large-scale projects in agriculture, MSMEs, and infrastructure. Banks must become partners in this mission,” he said.

He noted that the government is targeting Zero Poverty (P4) by 2029 and is establishing MSME clusters and Ratan Tata Innovation Hubs in each constituency. The Public-Private Partnership (PPP) model is also being adopted extensively for entrepreneurship and infrastructure development.

2024–25 performance surpasses target :
The Chief Minister commended banks for disbursing Rs 6.83 lakh crore in 2024–25, 127 percent of the target, marking the best performance in South India. Of this, Rs 4.14 lakh crore was issued under the priority sector, and Rs 2.68 lakh crore in the non-priority sector. The agriculture sector alone received Rs 3.07 lakh crore, exceeding the Rs 2.64 lakh crore target.

In the MSME segment, Rs 95,620 crore was disbursed against a target of Rs 87,000 crore. This included Rs 49,552 crore to micro enterprises, Rs 27,632 crore to small units, and Rs 18,138 crore to medium-scale industries.

Focus on equity, regional growth :
Naidu urged banks to enhance credit access for women farmers, tenant farmers, and marginalized communities. He also emphasized the need for direct lending to fishermen, bypassing middlemen to ensure fair incomes.On regional development, he said Visakhapatnam is emerging as an economic powerhouse, Amaravati will anchor future opportunities, and Rayalaseema will be developed as a hub for horticulture and electronics.

Growth rate concerns raised :
Despite the strong performance, finance minister Payyavula Keshav expressed concern over the declining growth trend in credit disbursal. He noted that while targets were exceeded each year, growth fell from 163 percent in 2022–23 to 127 percent in 2024–25.

Bankers responded by assuring the Chief Minister of their commitment to surpass this year’s target. They said special emphasis is being laid on Self-Help Groups (SHGs), women entrepreneurs, education, and housing loans.