Sangareddy, April 05: At least 15 branches of private banks failed to extend farm loans to farmers in Medak district.
As repeated appeals failed to yield any results in extending loans and reaching targets, the district Collector has reportedly recommended cancellation of licences of those branches.
A letter to this extent was forward to the head offices of those banks in addition to the Reserve Bank of India (RBI) by Collector S. Suresh Kumar.
An officer involved in the process revealed these details on condition of anonymity.
For the first time in the history of Medak district, any Collector did not make such recommendations, he added.
In addition to private banks, certain branches of public sector banks like Andhra Bank, Syndicate Bank and Central Bank failed to extend loans to the targets given by the district administration.
According to sources, these banks were expected to extend a loan facility to the tune of Rs.15 crore for about 3,000 farmers in the district. These branches of the banks were able to function normally even after denying the genuine right of farmers to get loans.
“The higher officials of these banks informed that they will try to reach the target and put in the corrective steps. But no action was taken against those officials responsible for not extending loans,” said a bank officer.
–Agencies