Loan recovery: H D Kumaraswamy asks Axis Bank for amicable solution

Bengaluru: Chief Minister H.D. Kumaraswamy has stepped in to prevent forceful recovery of dues owed by farmers to the Axis Bank,  following an arrest warrant issued against them by a Kolkata court  based on the bank’s petition.

In a statement on Monday, Mr Kumaraswamy said he had asked the bank officials to hold a meeting with the farmers to arrive at an amicable solution. 

Axis Bank responded in a statement of its own that it was ready to cooperate in the matter. “Our bank through its branches has extended various credit facilities to farmers, who have borrowed money for their agricultural/farm related activities. In accordance with the laws of the land, legal proceedings were initiated almost six months ago following their failure to repay the loans. The bank has also  been working towards an amicable loan repayment process through a one-time settlement schedule and would like to encourage the farmers to take this opportunity. We are aware of the notification issued by the government of Karnataka on the loan waiver scheme and shall support it and the SLBC’s directives. Needless to say, the interests of the farmers are of utmost priority and the bank will work with the government of Karnataka to resolve the matter in the best interests of all parties concerned,” said Mr. Sadashiva Mallya, regional branch banking head, south, Axis Bank.

The Chief Minister’s office also said in a statement that a team of officials led by senior IAS officer, Munish Moudgil, was overseeing the implementation of the loan waiver scheme. "A unique software has been developed by the team to enable the government to implement the scheme in a transparent manner. The nationalised  banks have shared details of farmers, who have taken loans from them and they are being verified using the new software,” it said.