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SBI identifies Rs 10,000 Cr agri loan pool for restructuring across three drought hit states; uptake likely to be limited

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SBI identifies Rs 10,000 Cr agri loan pool for restructuring across three drought hit states; uptake likely to be limited

SBI identifies Rs 10,000 Cr agri loan pool for restructuring across three drought hit states; uptake likely to be limited

State Bank of India has identified a potential agricultural loan portfolio of around Rs 10,000 crore for restructuring across three states that have declared drought, with the actual uptake depending on farmers opting for the facility and giving their consent. Chairman C S Setty said the bank's past experience suggests that not many borrowers avail of such restructuring.

The Rs 10,000 crore is a potential restructuring pool identified by the bank, not the amount already taken up for restructuring.

State Level Bankers' Committees (SLBCs) have passed the necessary resolutions to extend restructuring relief following the drought declarations.

SBI's agricultural gold loan portfolio continues to remain of good quality, with loan-to-value ratios of around 60-61%.

Country’s largest lender State Bank of India has assessed around Rs 10,000 crore of agricultural loans across three states that have declared drought as a potential portfolio for restructuring, a senior bank official said. The respective State Level Bankers' Committees (SLBCs) have passed the necessary resolutions to make restructuring relief available following the drought declarations. However, the identified amount is a potential pool and not the quantum of loans already restructured. SBI Chairman C S Setty said the actual uptake would depend on farmers coming forward and consenting to the restructuring. Advt

“Our past experience shows that not many come for the restructuring,” Setty said, adding that SLBCs are required to provide a restructuring dispensation after a natural calamity such as drought or floods is declared.


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