(FE)
State Bank of India (SBI) today announced a one-time farm loan settlement scheme worth Rs 6,000 crore primarily for tractors. “One Time Settlement (OTS) announced for #Agriculture #Loans! Scheme valid until 31st March. Contact your branch for details & benefits,” the nation’s largest lender said on the microblogging site Twitter today.
Managing director Rajnish Kumar told CNBC-TV18 the scheme will result in the bank taking a 40 per cent haircut on outstanding tractor loans as of September 2016. SBI’s total farm loan portfolio is Rs 1.25 trillion and Kumar said the tractor loan book is about Rs 6,000 crore.He said doubtful or loss category accounts as of September 2016, which were disbursed before September 2011, will be considered under the scheme. He said a circular in this regard was sent to branches on February 2.
