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Tamil Nadu
Bank to free ryots from the clutches of moneylenders
Staff Reporter
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Ministry has fixed a target of Rs. 2.80 lakh crore farm loans
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40 per cent of farmers took loans from public banks Proposal to shed high-cost deposits is to check interest
KANCHEEPURAM: Indian Bank will swap moneylenders’ loans to farmers for bank loans, according to its chairman and managing director M.S. Sundara Rajan. Such loans will form 3 per cent of total agriculture loans to be issued by the institution during this fiscal year.
Talking to reporters here on Monday, the CMD said the Union Finance Ministry had fixed a target of Rs.2.80 lakh crore for farm loans to be issued through banking institutions during this financial year. Last financial year, it was Rs.2.40 lakh crore.
As far as the agriculture sector was concerned, only 40 per cent of the farmers availed themselves of loans from public sector banks (PSB).
The remaining borrowed from local moneylenders.
Under such circumstances, Union Finance Minister P. Chidambaram called upon the PSBs to take over moneylenders’ loans to farmers and swap them for bank loans at lower rates.
Responding to a question on IB’s proposal to shed high-cost deposits to the tune of Rs.2,000 crore during first quarter of this fiscal year, Mr. Rajan said it was measure initiated by the bank to check interest in view of inflation and other developments affecting the banking sector.
At present, the bank’s Net Interest Margin is 3.43 per cent.
He replied in the negative when asked whether recent upward revision of cash reserve ration (CRR) had prompted the Bank to shed high-cost deposits.
“At the same time, the bank will continue to accept deposits from general public in the form of savings bank account, cumulative deposits and fixed deposits”, he added.
Reverse mortgage scheme
As far as the Reverse Mortgage Scheme announced by the Union Government in 2007-08 Budget was concerned, the bank had received 10 applications seeking financial assistance to the tune of Rs.2 crore so far.
Senior citizens were yet to be familiarised with the advantages of this scheme.
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