CNN-IBN EXCLUSIVE
UPA waives off farmer loans, SBI stops loans
Published on Mon, May 19, 2008 at 16:11, Updated on Wed, May 21, 2008 at 13:41 in Business section
Tags: Farm Loan Waiver, Congress , New Delhi



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New Delhi: The State Bank of India is the largest bank in the country and traditionally doles out the maximum amount of loans to farmers across the country.
However, it has now decided to put on hold, any new loans to finance new tractors or farm mechanisation activities.
In a circular issued last Friday from Mumbai, the SBI has categorically stated that the bank has large portfolio of tractor loan accounts with high overdues.
Since many farmers benefit from Union Finance Minister P Chidambaram's budget declaration of farm-loan waiver of Rs 60,000 crores, India's biggest nationalised bank cannot afford to give out loans for tractors and farm mechanisation — which account for more than half in the agricultural loan sector.
Recently, State Bank Chairman, O P Bhatt told analysts that more farmers had stopped repaying loans since the debt waiver scheme had been announced.
Sources indicate that tractor sales all over the country will be showing a sharp decline following this decision by the State Bank of India.
The fear is now that other nationalised banks, who have to bear the burden of UPA government loan waiver, may soon follow SBI's footsteps.
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SBI is a Govt Bank,So it should not stop giving loans to the farmers.Because all the farmers are not benifited
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Farmers are indeed the first citizens of this country for they are pampered so much by the ruling governments that
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Loan waival is another method of corruption adopted by our politicians. In Karnataka Deve Gowda is promising that if his
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This is the best step any bank can take.
We give free power, no income-tax and now waive all the loans
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It is inevitable. Loans can be waived off or the interest part can be waived off. A Government waiving entire
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