SBI puts on hold Agriculture sector loans
The State Bank of India has put on hold financing of new tractor and other capital equipment. The move that can have an impact on agriculture sector, a priority area for the government.
The SBI has issued a circular to all its branches, saying that the bank has put on hold financing new tractor and farm mechanisation activities, which include power tiller and combine harvester, with immediate effect in view of very high over dues in this sub-segment of agricultural advances.
This comes within months of the finance minister, P. Chidambaram, announcing a whopping Rs 60,000-crore debt waiver for distressed farmers. Sources said that in the tractor segment, SBI has been facing a very high rate of non-payment from farmers and this was the main reason behind the move.