Banks in Kerala to write off farmer's loans

Thiruvananthapuram, Feb 9 (UNI) The Commercial banks in Kerala has decided to write off loans to the tune of Rs 88 lakh of debt-ridden farmers who committed suicide.

The decision was taken at the State Level Bankers' Committee (SLBC) which met here today.

The meeting decided to write off loans of about 240 farmers, who had committed suicide over the years following debt, a release said here.

They SLBC also reiterated their commitment to fully implement the relief package to distressed farmers in Wayanad, Palakkad and Kasargode districts.

Having fulfilled the commitment, the banks were expecting the government to reimburse the individual liabilities of above Rs one lakh.

A total of 21 lakh Kisan credit cards had already been given and the rest of the eligible farmers would be given the facility by March.

The banks had set a target of Rs 9,645 crore for the agricultural sector in 2006-07 and formed a working group to finalise the action plan for farm credit during the 11th plan.

The total deposits in the banks grew from Rs 70,708 crore in 2005 to Rs 82,970 crore in 2006, marking a year-on-year growth of 17 per cent, the release added.

UNI