SBI withdraws decision to freeze tractor loans

Country's largest lender State Bank of India decides to withdraw the circular issued on Monday that asked its branches to freeze loans for purchase of tractors and farm implements because of rising default rate.

Country's largest lender State Bank of India (SBI) has decided to withdraw the circular issued on Monday that asked its branches to freeze loans for purchase of tractors and farm implements because of rising default rate.

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"The circular is withdrawn with immediate effect," SBI Chairman O P Bhatt said in a statement.

The decision follows protests from political parties and farmers' bodies against the lender's earlier decision to freeze loans for purchase of tractors and farm implements.