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 ...
