Banks asked to broaden loan portfolio to help Punjab farmers

Punjab government has directed its district central cooperative banks to broaden their loan portfolio to increase their profitability in a way to provide maximum financial benefits to poor farmers.
While reviewing the annual performance analysis of various state cooperative banks here today, Punjab Financial Commissioner (Cooperation) and Punjab State Cooperative Bank Ltd Chairman V K Singh said the business of the banks should not be curtailed and various kinds of loaning services must be provided to the needy farmers in a transparent manner.
Expressing his disappointment over the problems faced by farmers, he said the cooperative banks could play a vital role in bringing the farmers out of this distress by providing soft loans to them at reasonable interest rates.

He also advised banking officials to counsel the distressed farmers against taking extreme steps like suicides.
He suggested that banks should hold meetings and workshops at village level and invite expert speakers to counsel farmers on this subject.
On the occasion, managing directors and district managers presented performance analysis of their respective banks for the year 2016-17.
Singh asked banks to design more farmer-friendly loan schemes so that they can avail loans at competitive rates and wean them away from unorganized money lenders.
He said the cooperative banks were advancing crop loans of nearly Rs 12,500 crore to nearly 9 lakh farmers in the state, 75 per cent of which belong to the small and marginal farmers categories.