Decision on farm loan waiver after govt guidelines:Canara Bank

Amid reports of banks' reluctance to waive farm loans in Karnataka, Canara Bank today said a decision on the issue can only be taken after the state government prepares its guidelines.

"Two committees set up for grameen and commercial banks are going to meet on August 1 to deliberate on the government's suggestions on the modalities to waive farm loan," Canara Bank Executive Director Matam Venkata Rao told reporters here during the Q1 results of the bank.

"Once the committees deliberate with the government, then they will come out with final guidelines," he said.

The response came in the wake of reports about bankers being sceptical of writing off farm loans.

"The guidelines will then be placed before a competent authority and thereafter, a decision will be taken with regard to farm loan waiver," Rao added.

Only after drafting of the guidelines, the bankers would be able to prepare the list of defaulters whose loans would be waived, Rao said.

The bankers committees were formed during a State Level Bankers Committee meeting with Karnataka Chief Minister H D Kumaraswamy.

The delay in waiving loans has upset the farmers, who have given a August 15 deadline to the government. They have threatened to go on statewide bandh if government failed to take steps in this regard.

Kumaraswamy had unveiled a Rs 34,000 crore farm loan waiver in his July 5 budget. A week thereafter, he announced additional farm loan waiver amounting to Rs 10,700 crore.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)