The Hindu : National : Congress, BJP criticise SBI circular on loans

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Congress, BJP criticise SBI circular on loans

Neena Vyas

Decision will have an adverse impact on agriculture: Rajnath
Need to clip the absolute freedom of public sector banks: Congress

NEW DELHI: The ruling Congress and the Opposition Bharatiya Janata Party on Tuesday condemned the State Bank of India for “putting on hold” new loans to farmers for the purchase of tractors.

They were reacting to the selective leak of the circular, which suggested that such loans should be put on hold, but advised the branches to help farmers whose loans were overdue on account of tractor purchase to take advantage of the debt relief announced by the Centre.

Both the parties ignored the first part of the circular which advised all branches to get in touch with tractor dealers, identify those who had taken loans, and use their good offices to educate farmers on how they could get debt relief.

BJP president Rajnath Singh said this had again “exposed the anti-farmer face of the Congress-led United Progressive Alliance.” Such a decision would have an “adverse impact on agriculture.” The party claimed that debt relief was yet to reach the farmer.

The BJP would organise a demonstration on the issue in the capital. The BJP wondered whether banks would stop loans to the corporate sector because of the accumulation of non-performing assets as a result of bad loans to the sector. It alleged that even in the earlier package for Vidarbha farmers, the truly distressed farmers did not get the help and the “majority” who received some help were not among the most distressed category of farmers.

The BJP has already raised the circular issue in the election campaign in Karnataka, which came to an end on Tuesday evening. Minister for Parliamentary Affairs Vayalar Ravi, who is Congress observer for Karnataka elections, said the absolute freedom of public sector banks needed to be clipped.

Criticising the SBI for its circular, he said that especially at a time when agriculture was going through a crisis, “it is not for a public sector bank to take such a decision” which went against government policy.

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