Bank of Baroda Launches New Initiatives to Improve Tractor Financing

Bank of Baroda, country’s leading public sector bank, has taken new initiatives towards improving credit penetration in farm mechanization and in order to take this forward, the Bank took three initiatives in single day, all focused on providing better financial service to farmers and empowering them towards farm mechanization. 

Vikramaditya Singh Khichi, Executive Director launched the program virtually. Other executives connected through virtual mode were Mr. Rohit Patel, CGM- Rural & Agri Banking, Mr. M V Murali Krishna, GM & Head- Rural & Agri Banking, all Zonal Heads, Regional Heads and Priority Sector In-charge of Zones & Regions along with branches participating in the mega disbursement. 

On the occasion, Khichi said “Agriculture sector is the only resilient sector with least impact by the COVID pandemic. With more than normal monsoon, the economy is expected to revive through contribution from agriculture sector. To boost the credit flow to agriculture segment, Govt of India has launched 3 schemes viz. Agri Infrastructure Fund, Infrastructure Fund for Animal Husbandry & Pradhan Mantri Formalization of Micro Food Enterprises (PM FME), which will be helpful as well. At Bank of Baroda we strive to make our products competitive and improve our processes keeping the customers at the centre. The new cluster model will help in maintaining TAT for customers and improvise the credit quality.”  

The Bank replicated ‘Cluster Model for Tractor Financing’ presently operational in Lucknow Zone for additional Zones - Ahmedabad, Baroda, Rajkot, Jaipur, Bhopal, Pune, Hyderabad, Bengaluru, Mangaluru, Meerut and Chandigarh. ‘Cluster Model for Tractor Financing’ will ensure a focused approach at all levels with dedicated officers being assigned specific roles to ensure a qualitative and compliance oriented growth of the segment apart from reducing the turnaround time. 

Secondly, Bank of Baroda entered into an MOU with Baroda based Tractor OEM M/s Gromax Agri Equipment Limited (GAEL). GAEL (erstwhile Mahindra Gujarat Tractor Ltd) is an entity of Mahindra Group, a leading Tractor Manufacturer in India. Besides, Government of Gujarat has a 40% stake in GAEL, which has its registered office and high-tech manufacturing plant spread over 55 acres land in Vadodara, Gujarat. 

This MOU will help Bank of Baroda customers to get discount up to Rs. 1, 00,000/- on purchase of tractors directly from the company outlets. Further, on purchase in other states (except Gujarat), a discount up to Rs 15000/- will be given by GAEL in the form of payment of 1st EMI for its 45 HP & 50 HP models. 

Thirdly, Bank of Baroda celebrated ‘Maha-Disbursement Day’ for Tractor Finance and sanctioned 600+ Loans in a single day through Cluster Model wherein few loans have been sanctioned using the Central Processing Centre (CPC). Sanction letters were handed over to eligible farmers at various locations across country.