Andhra Pradesh crop loans waiver: Bankers displeased

New Delhi: The proposal of Andhra Pradesh state government to waiver off the crop loans amounting to Rs. 54,000cr has been opposed by the bankers. Arundati Bhattacharya, the Chairman of SBI, has allegedly said that if the same was undertaken by the government, it would show a great impact on the banking sector. She made it a mention during an interview given to an English News Channel that such a move would encourage the defaulters and discourage the sincere loan re-payers. She said that such a move would not have any advantage for the people who have repaid their loans well in time despite many hardships.

She also opined that the sincere farmers would also turn into loan defaulters. She said there would be a chance that the loan seekers would wait for a similar opportunity for getting their loans waivered off. She responded to the question regarding the opposition from the bankers on the loan waivers and said that Indian Bankers Association held discussion on this matter and would likely to protest against such move before IBA.