While Politicians Promise Loans, Bank Of Maharashtra Shuts The Door On Drought-Hit Farmers
The state run Bank of Maharashtra has shelved the loans to be given in drought hit zones in the states of Maharashtra and Madhya Pradesh. The major districts which will get affected by this move are Latur Aurangabad Akola and Amravati According to bank the bad loans from agricultural branches operational in these zones are the key reason behind this decision.
In a move which can be deemed anti-people, the state run, Bank of Maharashtra has shelved the loans to be given in drought hit zones in the states of Maharashtra and Madhya Pradesh and major districts which will get affected by this move are Latur, Aurangabad, Akola and Amravati.
According to bank, the bad loans from agricultural branches operational in these zones are the key reason behind this decision. The Hindu reported.
¡°The present condition of agriculture is pathetic, wherein gross NPAs under agriculture stood at 18.36%,¡± the bank said in a circular to the branches. As the copy of the circular was reviewed by the newspaper, it has been learnt that the bank has seen fresh slippages of Rs 1300 crore in 2018-19 from agriculture loans.
¡°It is observed that eight zones/its branches are having high % [percentage] of agri NPAs which are identified for curative action on NPA management,¡± the circular said.
The remedial action has also been suggest by the top management as it says ¡°Branches having NPAs > 15% shall not sanction new/enhancement proposals under agriculture.¡±
The bank has asked branches in these zones to tap the cases of borrowers with good track record or the new clients and recommend to next authority to sanction the loan.
