SBI received Rs 500 crores from Telangana as part of farm loan waiver

SBI received Rs 500 crores from Telangana as part of farm loan waiver

Chief Minister K Chandrasekhar Rao had declared first installment of reimbursement totaling of Rs 17,000 crores in last September as a part of the crop loan waiver scheme assured by the ruling TRS during the elections. Various banks got Rs 4,250 crore, or 25% of these total waived loans.

The CM’s government has said it will pay up to Rs 1 lakh to each of the 36 lakh affected farmers in the scheme. In the current loan waiver scheme, the state announcing the loan waiver should pay up to 25% of the total impacted debt to the banks.

SBI managing director for national banking and group executive B Sriram said “In September, the Telengana government paid the mandated 25% to various banks. Out of the total (around Rs 4,250 crore), we have received Rs 450-500 crore,” The state has to pay the remaining amount to banks by December 31, he added.

Sriram said farmers have started to the service/renew their loans. “Earlier, where the farmers were not coming to renew their debt, but now they have started to come and normal business has started,”

When asked about the possible impact on Andhra waiver, Sriram said it is yet to be computed but added that the amount would be pretty high compared to Telangana, as 75% of the bank’s farm sector exposure in these two states is in Andhra Pradesh.

He said the banks are now in the process of collating data on loans given to farmers in Andhra, where the now ruling TDP had promised a loan waiver, to access the number of affected farmers.

“The data is still to be organized in Andhra as to how many people…What is the amount. Once that happens then the government will go ahead with some sort of scheme,” Sriram added.

Present AP chief minister Chandrababu Naidu was the first one to promise to write off loans of farmers impacted by cyclone Phailin that battered both the states last year in the run-up to elections in May. Andhra claims to have over Rs 1.3 trillion worth of farm loans impacted by the cyclone.

Sriram said a major portion of the fund received includes amount from the standard accounts and some from non-performing accounts.

.