UBI to write off bad farm loans worth Rs 400-cr

Union Bank of India (UBI), is likely to write off around Rs 400 crore of farm loans under the Rs 60,000-crore farm loan waiver programme announced by the finance minister, a top bank official said. “Our direct agriculture lending portfolio is Rs 7,000 crore out of which Rs 400 crore would come under this category (loans to be written off),” UBI CMD M V Nair said. The FM had said in his budget speech that the waiver would cover all farm loans disbursed by banks upto March 31, 2007, and overdues as on December 31, 2007. While a complete waiver will be effected for farmers in the marginal and small category, a rebate of 25 per cent will be given to farmers in other categories against the payment of the balance.