To help the farmers, Punjab Government has directed its district central cooperative banks to broad base its loan portfolio to increase its profitability and design it in such a manner so that maximum financial benefits should reach to the poorest of the poor amongst the farmers.
“The business of the banks should not be curtailed and various kinds of loaning services must be provided to the needy farmers in a transparent manner,” said Punjab Financial Commissioner (Cooperation) and Punjab State Cooperative Bank limited’s chairman VK Singh, while reviewing the annual performance analysis of various State cooperative banks on Tuesday.
Expressing disappointment over the farm distress, Singh said the cooperative banks could play a vital role in stressing out the farmers from this distress by providing soft loans to them at reasonable rate of interest.
He also advised the banking officials to counsel the distressed farmers against taking extreme steps like suicides. “Banks should hold meetings and workshops at village level and invite expert speakers on this occasion to counsel farmers on this subject,” he said.
Singh suggested the banks to design more farmer-friendly loan schemes so that they can avail loans at competitive rate of interest and wean them away from the very high interest regime of the unorganized sector like money lenders.