The Hindu Business Line : Chidambaram: 9% growth will take care of loan waiver

The Union Finance Minister, Mr P. Chidamabaram, handing over the passbook to Mr M. Manickam, Managing Director, Sakthi Sugars, after inaugurating Bank of India’s new branch at Kundrakudi in Sivaganga District, Tamil Nadu on Saturday. Seen with them are (second from left) Mr K.R. Periakaruppan, Tamil Nadu Minister for Hindu Religious and Charitable Endowments, and Mr T.S. Narayanasami, Chairman and Managing Director, Bank of India. —

Our Correspondent

Kundrakudi (Sivaganga District), March 8 The Union Finance Minister, Mr P. Chidambaram, exuded confidence that the current economic growth of around 9 per cent would take care of the massive waiver of farmers’ loans announced in the Budget.

“The same growth rate would continue and I have the support of the Prime Minister,” he said while inaugurating the 2,956th branch of Bank of India at Kundrakudi in Sivaganga district (Tamil Nadu) on Saturday.

Stating that the waiver of loans was nothing new and had been done in the past, the Finance Minister said: “it was done with a sense of responsibility to the farmers and the country owes to them.”

According to him, the extent of loan waiver has perhaps ‘astounded’ people and the Government felt that “the farmers who underwent testing times needed help as their debt burden has increased beyond bearable limits.”

Mr Chidambaram said small and marginal farmers have been forced to go to moneylenders despite banks offering loans at a low interest rate.

Responding to the Opposition parties’ demand to know the source of money for the waiver, he said that “the how and where from the money would come would be revealed in Parliament.”

Mr T.S. Narayanasami, Chairman and Managing Director, Bank of India, in his welcome address said the waiver would not affect the profitability of banks.

Speaking about the bank’s performance, the CMD said business volume had touched Rs 2.4 lakh crore.

Over 90 per cent of the bank’s operations has been brought under core banking system, he said and added that 25 more new branches would be opened before the end of this month.

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