Sonalika Tractor enters N K'taka

The Karnataka Vikasa Grameena Bank (KVGB) has signed an MoU with the internationally-renowned Sonalika Tractor Company from Punjab.

Farmers and small road transport operators form the target group for whose benefit the MoU has been signed.

KVGB Chairman M Dhananjaya and assistant general manager of Sonalika Anil Joshi signed the MoU in Dharwad on Thursday.

Dhananjaya said that the bank was committed to introducing the latest farm technology to farmers.

He informed that this fiscal the bank has given loans to the extent of Rs 38 crore for purchasing 843 tractors. The bank aims to finance 2,000 tractors till the end of March 2007.

Explaining the reasons for entering into an MoU with Sonalika, he said Sonalika Tractors were zero defective tractors. The dealers will extend free registration and six free services.

The half-yearly performance of the bank according to Dhananjay is encouraging. The bank has recorded about 20 per cent point"�to-point growth. The business stood at Rs 3,902 crore having earned a net profit of Rs 42.01 crore.

The average market share of the bank in the nine districts of its area of operation is 9 per cent. During the first six months the bank disbursed Rs 353 crore through 58,978 Kisan Credit Cards.

Dhananjay said that three months, November 2006 to January 2007, have been declared deposit mobilisation campaign period. The funds deposited during this period under various schemes will attract a higher rate of interest.

Joshi was optimistic about a strong base for his company in Karnataka due to the branch network of KVG Bank.

He said that Sonalika occupied third position in the country as per the figures available with the Tractor Manufacturing Association. The company provides 16 types of tractor starting from 30 HP to 75 HP.

During 2005-2006 the company sold 32,017 tractors. He said the tractor was farmer-friendly and hence saw demand from other countries also.