PNB plans to reschedule loans for drought hit areas

Punjab National Bank, after SBI, is planning to reschedule loans in the affected areas in addition to other measures.

This year nearly two-fifths of the districts have been affected by drought.

Gobinda Banerjee, GM, priority sector and lead bank division, PNB informed that about 15-20% of crop loans will need to be re-scheduled. He said the bank will have to convert these loans from short to medium term loans.

He told bank’s total agricultural credit portfolio amounts to Rs 200 billion, out of which crop loans accounted to Rs 120 billion.

He added bank will be rescheduling all loans as per Reserve Bank of India guidelines and instructions related to this have been issued to branches of the affected areas. He told the parts of Andhra Pradesh and Uttar Pradesh have been affected the most.