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AP CM requests banks to reschedule agriculture loans

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Press Trust of India Hyderabad
Last Updated : Jun 30 2014 | 10:04 PM IST
Andhra Pradesh Chief Minister N Chandrababu Naidu today requested banks to "reschedule" agriculture loans so that he could eventually keep the promise of a loan waiver.
"We should not rub farmers on the wrong side. I will give clarity on the loan waiver in two or three days. Request bankers to first reschedule all agricultural loans," he said addressing a meeting of the State Level Bankers' Committee.
He asserted that his government would implement the loan waiver as promised to farmers.
The Chief Minister noted that farmers in the state had been pushed into a deep economic crisis due to a series of natural calamities in the last few years.
Hence, loans have to be rescheduled and fresh credit issued to farmers.
Earlier, State Level Bankers' Committee President and Andhra Bank CMD C V R Rajendran asked the state government to "bring clarity" on loan waiver as the current imbroglio was hampering the performance of banks with crop loan disbursements during the ongoing kharif season coming to a halt.

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He said banks were unable to recover dues amounting to a staggering Rs 87,000 crore.
Rajendran said farmers in the state "demonstrated reluctance" in loan repayment or renewal of crop loans anticipating a debt waiver.
"The reluctance is observed even in case of high value loan accounts and from term-loan borrowers. Slippage of agriculture loans into non-performing assets is on a very high side resulting in higher provisioning, ultimately affecting the credit rating of banks," Rajendran said.

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First Published: Jun 30 2014 | 10:04 PM IST

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