Rural banks halt lending due to merger, farmers hassled

Parvesh Sharma

Tribune News Service

Sangrur, January 1

Known as prominent source of lending for rural population, mostly farmers, in 11 districts of the state, Malwa Gramin Bank (MGB) and Sutluj Gramin Bank (SGB) have been amalgamated into Punjab Gramin Bank (PGB).

The notification for the amalgamation, which became effective from today, was released on December 21.

The authorities of both banks have not been issuing fresh loans since December 27. Sources say the amalgamation has been implemented without any training, updating software, change of stationary and other mandatory preparations.

Harjit Singh Sanjuma, district president of SAD (Amritsar), said: “The authorities should have made preparations in advance. Farmers are being refused loan by MGB, Sangrur, despite good credit worthiness. They are being made to suffer without any fault.”

Jaswant Rai, general secretary of the erstwhile SGB officers association, said: “The SGB has stopped all lending schemes till further orders. PGB schemes will be implemented across the state after training to our employees.”

Some officers told The Tribune that the authorities would have to undertake major overhauling of computer systems of both banks, which might take more than one or two months.

Pali Ram Bansal, general secretary of the erstwhile MGB officers association, said: “Though there is difference in software and schemes, we will try to resume normal banking operations at the earliest.”

Newly appointed Regional Manger (RM) of PGB, Sangrur, Amandeep Singh confirmed that lending schemes had been stopped. “We will provide training to all amalgamated bank staff about our schemes. The software will also be updated soon. All this is being done to provide better services to our clients,” he said.