State-run lender Bank of Maharashtra on Tuesday said any new or fresh proposals on agricultural loans by branches will have to be referred to the next sanctioning authority, the zonal office.
“We have to clarify that bank has not put any restriction on extending Agriculture Credit Assistance to the farmers. In 8 select Zones, to mitigate the hardship of farmers & to speed-up the process, Review / Renewal of existing Short Term Crop Loans (MKCCs) every year will be done by the Branches only. Any new / fresh proposals will have to be referred to the next sanctioning authority i.e. respective Zonal Office,” it said in a statement.
Last Wednesday, The Hindu had reported that the lender had identified eight zones, some of which are hit by drought, which have high percentage of agriculture NPAs. As a curative action, the bank’s management suggested that “branches having NPAs > 15% shall not sanction new / enhancement proposals under agriculture.”
In the statement made on Tuesday, the bank said for ease and faster turnaround time for farmers, it has set up dedicated loan processing cells having a sufficient number of Agri Filed Officers.
“To accelerate finance to the farmers for Kharif 2019 season Bank of Maharashtra will be organizing Shetkari Melavas across India,” it added.