(a) whether the State Bank of India (SBI) has issued a circular in the recent past
directing all its branches not to issue loans for tractors and other agricultural implements;
(b) if so, the details of the circular; and
(c) the corrective measures taken/being taken by the Government in this regard?
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE(SHRI PAWAN KUMAR BANSAL)
(a) to (c) : State Bank of India (SBI) vide circular No. ABU/Pd&M-4/Cir-02/2008-9 dated 16th
May, 2008 had issued a direction to the branches that the distressed farmers having tractor
loan accounts with high over dues could avail benefits under the Agriculture Debt Waiver and
Debt Relief Scheme.
In the same circular, the bank also put on hold financing new tractor and farm mechanization
activities viz. Power Tiller, Combine, Harvester etc. in view of very high overdues in this
sub-segment of agriculture advances. This decision was to be reviewed based on the progress
achieved in reduction of overdues, in due course. SBI, however, vide Circular No.
ABU/PD&M-4/Cir-03/2008-09 dated 21st May, 2008 withdrew this direction with immediate effect
and directed the branches to continue financing these activities as per extant guidelines.