Criticism reflects muddled view of commercial banks' functioning The fact that the country's largest bank was forced to withdraw an innocuous internal circular on farm loans only indicates the inability of even well run banks to take independent decisions. A farmer in his field in Punjab. An internal circular issued early last week by State Bank of India to its branches advising restraint on lending for purchase of tractors and farm equipment became a major controversial issue. Subsequent reports pointed out that the purport of the circular was not to enforce a blanket ban but to enable some of the existing distressed borrowers to avail themselves of loan waiver facilities from the government. The intended benefit to the bank was, of course, recovery of some loans that had become sticky. In the sub-category of advances for buying tractors and farm equipment, SBI has a large share of problem loans. Taken out of context, the paragraph dealing with a freeze on such loans was construed as