SBI does flipflop, to resume tractor funding

"We regret that our Circular dated 16th May 2008 concerning tractor loans has been misunderstood and has given rise to concern. The Circular is withdrawn with immediate effect ", SBI chairman O P Bhatt said in statement.

Concerned over rising overdues and defaults on tractors loans, last week India's largest lender had issued instructions to its branches to put on hold fresh loans for farm machinery like combined harvertors.

 

Last night (May 20, 2008) Bhatt had issued statement that defaulters should use government debt waiver and relief scheme and later come back to bank for fresh credit.

The  bad loans for this category (farm mechanisation including tractors) and as  high as 17 per cent on the asset portfolio of Rs 7,000 crore.