SBI Chairperson Arundhati Bhattacharya has said that the group will oppose the proposal of waiving farmers loans by Telangana, Andhra governments at the Indian Bank Association Committees. The proposal is a bad practice as it penalizes the good borrowers and rewards the bad loaners.
“I believe that this kind of a thing is not good for anybody at all mainly because it rewards bad borrowers and penalizes good borrowers. And it forces good borrowers to become bad borrowers in the future because people who have really kept up the banking discipline they have actually worked hard, returned the money to the banks, they don’t get any benefit out of such loan waivers at all. As a result the next time around they also learn a bitter lesson and they also become bad borrowers awaiting these waivers,” said Bhattacharya with a media agency today.
“We will oppose such moves as they destroy the lending and borrowing culture of the Country,” she concluded.
Telangana government is working on waiving over 20,000 crores worth farm loans, while Andhra government has promised to quash over 50,000 crores worth loans. Telangana and Andhra have given 49 thousand crores and 87 thousand crores worth loans to the agriculture sector in total.