Banks must have pro-farmer credit strategy: Nath

The Commerce & Industry minister Kamal Nath said that Indian banks should revamp their rural credit strategy for the benefit of the farmer.

Speaking at the FICCI India Rural Business Summit Nath said, "Banks should make money but then the fact is that a farmer's desire to repay loans is not backed by his ability. An Indian farmer's incremental gains from agriculture goes towards repayment of loans and interests".

As a result, the farmer gets stuck in the vicious circle of paying interest and loans and a solution is required to address this issue. In order to sustain the urban growth rate, the rural growth should be promoted, he added.