Boosting agriculture lending targets aggressively in new yrs has led to overleveraging. Deterioration in credit history tradition on the back of farm personal loan waivers and diversion of funds (as pointed out by the RBI’s report on agriculture credit history past September)is also a expanding trigger for fear.
The March quarter effects of PSBs counsel that all of this has led to a sharp rise in delinquencies in agri loans. For instance, Central Bank of India has found its agri NPA ratio spike to 14.7 for every cent in FY20, from nine.7 for every cent in FY19. Bank of Maharashtra’s