Nabard asks RRBs to rework poultry loans

The National Bank for Agriculture and Rural Development (Nabard) has suggested banks in West Bengal to restructure the loans given by them to poultry units on or after after 31, December 2007.

The deadline suggested for restructuring the loans is April 30, 2008.

"The principal and the interest due on working capital loans, as also installments and interest on term loans, which have fallen due for payment on or after the onset of bird flu, and the remaining unpaid amount may be converted into term loans," says the letter circulated by Nabard to co-operative and regional rural banks in West Bengal.

The converted loans can be recovered in installment based on projected future inflows over a period up to three years, with an initial moratorium of up to one year.

Nabard has also suggested the banks that the remaining portion of term loan may be rescheduled similarly, with a moratorium period of one year, depending upon the cash flow generating capacity of the unit.

Also, Nabard has suggested the banks to issue fresh loans.

On the wake of bird flu, Nabard has also hiked the projection for poultry loans to be disbursed by the banks from for 2008-09 from Rs 111 crore to Rs 318 crore.

Nabard has also asked the state levels bankers committee (SLBC) to submit a report stating the amount of outstanding dues on account of poultry loans in West Bengal at the earliest.