NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / Amid state-sponsored loan waivers, SBI proposes a one-time settlement scheme
    Amid state-sponsored loan waivers, SBI proposes a one-time settlement scheme
    1/5
    Business 2 min read

    Amid state-sponsored loan waivers, SBI proposes a one-time settlement scheme

    By Krunali Shah
    Sep 18, 2017
    01:24 pm
    Amid state-sponsored loan waivers, SBI proposes a one-time settlement scheme

    State Bank of India (SBI) in a bid to address its massive outstanding from agricultural loans and 'inculcate a repayment culture' among farmers is attempting to lure farmers with a one-time settlement scheme (OTS). This will be the biggest ever exercise undertaken by an Indian bank, particularly when a culture of populist loan waivers is seen throughout the country. Read on to know more.

    2/5

    What is the situation with loans and NPAs?

    As per RBI statistics, Indian banks' loan outstanding to the agricultural sector has increased by 6.8% over the previous year. Presently, it is worth Rs. 974,300 lakh crore. Considering SBI, in June 2017, its loan outstanding to the agricultural sector was Rs. 189,100 crore, i.e., 11.76% of the bank's total advances. Of its non-performing assets, 9.5% were from agriculture, i.e. Rs. 17,988 crore.

    3/5

    What scheme is the SBI proposing?

    SBI is proposing an OTS for non-performing agricultural loans and other unsecured loans of up to Rs. 20 lakh. A farmer with a Rs. 20 lakh loan can settle 50% of his dues, and the remaining will be waived. He can again apply for a loan in 30 days. Through this "Rinn Samadhan Programme," SBI expects to gather Rs. 1,500 crore by October 2017.

    4/5

    Why is this move significant?

    Talking about this move, Rajnish Kumar, SBI MD said the OTS scheme is interesting for farmers as it enables them to become "eligible for a fresh loan." By getting back "at least part of the loan", SBI will ensure farmers remain within "formal credit channels." In contrast to "loan waivers," which promote a habit of loan non-repayment, the OTS urges farmers to repay loans.

    5/5

    SBI's OTS at a time when states waive farm loans

    SBI's move urging farmers towards the OTS is against the backdrop of states completely waiving farm loans. To combat farmer distress UP, Punjab, Maharashtra and Karnataka have, as a populist measure, waived Rs. 85,000 crore of short-term crop loans. Rajasthan is also planning to follow suit.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Punjab
    Reserve Bank Of India (RBI)
    State Bank of India (SBI)

    Punjab

    Why did people have blind faith in 'godman' Ram Rahim? Haryana
    How a Sikh organization brings relief to the world's needy Boko Haram
    Youths are quitting tobacco, but why isn't that good news? India
    Radhe Ma in trouble? HC orders FIR against the "godwoman" Haryana

    Reserve Bank Of India (RBI)

    RBI may have its own "fiat" cryptocurrency called Laxmi Cryptocurrency
    New Rs. 100 coins, Rs. 5/10 coins to undergo changes India
    Indian banks need $65 billion to meet BASEL norms: Fitch India
    Do you know where your old Rs. 500/1,000 notes are? India

    State Bank of India (SBI)

    SBI will fund Aadhaar linkage costs, technology upkeep via penalty India
    SBI Card to soon introduce cardless payments India
    NEFT, RTGS, UPI: Here's everything to know about online transfers PhonePe
    SBI Life Insurance's Rs. 8,500 crore IPO receives SEBI nod Initial Public Offering (IPO)
    Next News Article

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023