New Delhi, June 7: The State Bank of India aims to reach out to at least 10 lakh farmers through the farmers' meets it is organizing at 15,500 rural and semi-urban branches on June 8.
"In view of the upcoming kharif season, we have instructed branches to actively pursue lending to farmers in line with the scale of finance fixed for various crops," its Managing Director (national banking group), Rajnish Kumar said.
For crop loans up to Rs 3 lakh, the effective interest rate is only 4 per cent per annum, if the repayment is made on time, he said. Last year, the agriculture sector witnessed a growth of 4.1 per cent and the trend is likely to continue. "As the MeT department has predicted a normal monsoon, we expect credit off-take to be good this season," he added.
As the Met Department has predicted a normal monsoon, the bank expects credit off-take to be good this season. Agriculture in the country had witnessed a growth of 4.1 per cent in 2016 and the trend was likely to continue, Kumar added.
SBI wants to reach out with this initiative to smoothen the flow in credit for agriculture by receiving applications for fresh loans as well as applications for renewal or enhancement of existing loan during these meets.
As on March 31, the SBI had reported a growth of Rs 9,000 crore under agriculture financing with improvement in recovery. SBI's market share under agricultural finance has increased to 29 per cent. Post-merger, SBI had a total loan outstanding of Rs 2,70,000 crore in the agriculture segment.