Govt asks NABARD to release Rs.21k cr to help farmers
The Dollar Business Bureau (sourced from PTI) Government has allowed NABARD to disburse Rs.21,000 crore to cash-starved farmers, helping them sow winter crops like wheat ahead of the sowing season, Economic Affairs Secretary Shaktikanta said today. The government's demonetisation move, which swept away 86% of currency in circulation, has badly hit farmers leaving them without cash just ahead of the sowing season. Das said the National Bank for Agriculture and Rural Development (NABARD) will disburse the money to farm cooperatives for onward payments to farmers. "NABARD, for the facility of agricultural operations in the current rabi season and especially for the benefit of farmers, has sanctioned a special limit of Rs.21,000 crore to district central cooperative banks," he told reporters here. More than 40% small and ...
Unseasonal Rains: Non-performing ratio of the agri-loan portfolio could double for some banks
The Dollar Business Bureau The non-performing loan (NPL) ratio of the agri-loan portfolio could double for some banks due to unseasonal rains, said a report. Further, the unseasonal rains were followed by one of the weakest and most deficient (12%) monsoons that the country had experienced in FY15 heightening turning the situation from bad to worse. Agricultural loans grew 16% in FY15 and have contributed 25% to incremental credit growth since March 2014. With delinquencies in the agri-loan portfolio likely to rise, they will add to the already stressed assets of banks (10.6% of loans on 31 December 2014), the report said and added, States highly impacted by these excess rains make up a significant portion (37%) of the ...
