The Hindu Business Line : Tractor producers plan to meet SBI officials

It is also open to taking up the matter at a broader level with the Indian Banks Association considering that SBI’s move of going slow in tractor financing may trigger some of the other players to trod a similar path.

“We are seeking to meet SBI officials to discuss the matter and assure them of our support up to the dealer’s end in helping them recover their loans,” said Mr L.D. Mittal, President of the Association and Chairman of the Sonalika Group companies.

He said that the association had taken up the issue during its meeting this week with the Agriculture Ministry, which had the presence of the Nabard Chairman and Secretary Finance, amongst other officials.

While the association has been assured of support from the Ministry and top officials, it was likely that the matter would be taken up with the apex chamber representing the banks, added Mr Mittal.

Set to grow

The domestic tractor industry produced around 3,40,000 units in the financial year 2007-08, lower than 3,70,000 that it approximately produced a year earlier.

This year, the industry association reckons the industry to grow at 10 per cent due to the increased allocation in the agriculture credit and high investments in agriculture.

“This year the rural credit announced of Rs 2,60,00 crore is 25 per cent more than the amount announced last year,” said Mr Mittal.

More Stories on : Credit Market | Farm credit | HCV/LCV/Tractors | State Bank of India

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