Date:04/08/2005 URL: http://www.thehindubusinessline.com/2005/08/04/stories/2005080402940600.htm

Back Andhra Bank to fund purchase of New Holland tractors

Our Bureau

Mr R. Balakrishnan (seated), Andhra Bank Executive Director and Mr K. Dhamaji, Director Marketing, New Holland Tractors, at the launch of the Kisan Bandhu scheme in Hyderabad on Wednesday. - - Mohammed Yousuf

Hyderabad , Aug. 3

ANDHRA Bank has tied up with New Holland Tractors (India) Pvt Ltd for tractor financing. The Andhra Bank Executive Director, Mr R. Balakrishnan, exchanged an MoU with the New Holland Marketing Director, Mr D.K. Dhamija, to this effect here on Wednesday.

Andhra Bankhad lent Rs 42.37 crore for 1,592 tractors during the last fiscal, Mr Balakrishnan said. In the previous fiscal, the bank financed 576 tractors involving an amount of Rs 14.4 crore. For the current fiscal, the bank has set a target of financing 4,000 tractors in all and 800 New Holland tractors. It proposed to offer value-added services to the tractor purchasers by providing both life and liability insurance cover, he said. Stressing the need to mechanise farm operations, he said the centrally-sponsored scheme `Promotion of Agriculture Mechanisation among Small Farmers' provides a subsidy of Rs 30,000 for purchase of tractors up to 30 HP either by individual farmers or a group of farmers. The bank is also entering into informal tie-up arrangements with tractor manufacturing companies for sourcing applications from their dealer network for financing farm mechanisation loans.