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agriculture tractor Despite mounting pressure from various quarters, the State Bank of India has decided to continue with

its decision to freeze loans to farmers on farm equipment — tractor, combined harvester and power tiller. SBI chairman OP

Bhatt said the bank will start giving loans to farmers for agriculture activities once the non-performing assets (NPAs) of

the bank comes down. SBI is trying to use the government's farm loan waiver schemes to cut its NPAs. Bhatt said, “It is our

attempt to sensitise our branches to help farmers take advantage of government's scheme and reduce NPAs of the bank.” Under

government's scheme, if farmers pay 75% of the loan outstanding, the remaining 25% would be provided by the Centre as debt

relief. The statement added that the bank has ambitious plans to strengthen its agri and rural loan portfolios and has

targeted a 33% growth in agri advances, amounting to Rs 13,400 crore during 2008-09. “State Bank wishes to assure the

farming community of the country that its commitment to agri and rural development remains undiminished,” Bhatt said.

Meanwhile, Tractor Manufacturers' Association (TMA) on Tuesday asked the government to persuade SBI against freezing loans

for farm equpiment, saying such a decision would harm the agriculture sector. The association demanded that government should

intervene and ask the bank to withdraw its decision of suspending new loans for buying tractors and other utility products.

It said the bank's decision would eventually hit the agriculture growth as food grain production would come to a standstill

for lack of tractors and other equipment. (Editor: Emily)