Farm loan waivers not good for banks :SBI Chairman

Onn Friday, the Congress moved a notice of breach of privilege of the Maharashtra assembly against Arundhati Bhattacharya, for her comments against farm loan waivers.

Leader of Opposition Radhakrishna Vikhe Patil said Bhattacharya's comments were an insult to the farmers and breach of privilege of the state legislature.

Questioning her statements, he demanded why Bhattacharya kept mum when Prime Minister Narendra Modi announced farm loan waivers during the Uttar Pradesh election campaign.

The Opposition Congress and NCP have been demanding a complete loan waiver for farmers by raising the issue in the legislature.

SBI chairman said on the sidelines of an event organised by CII that such waiver will allow for fall in credit discipline as people who get these waivers, it is found, will again expect the waiver in future as well.

He said, since Bhattacharya has no right to decide on loan waivers, she also has no right to comment on legislators' decisions on waiving off farm loans.

State Bank of India chairperson Arundhati Bhattacharya.

The MD said other agri loans like kisan credit cards and other term-loans for tractors and farm loans may also be covered under the scheme.

Vikhe Patil's move came a day after the opposition parties trolled Bhattacharya for her comments and demonstrated outside the SBI headquarters.

Vikhe Patil said, "Bhattacharya is not a policy-maker and she can not take a decision regarding loan waivers to farmers".

"He alleged that the SBI chiefs remarks were "violation of the rights of the legislature which make laws".

The Shiv Sena has even warned its ally that it would disrupt the proceedings till the farm loan waiver package is announced and create hurdles in the budget presentation this week.

  • Zachary Reyes