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Farm Loan Defaults Increased by 38% in FY18
August 31, 2018
Indian banking sector is struggling with the rising non-performing assets (NPAs) and the agriculture sector isn’t helping. According to the RBI data, agriculture loan defaults increased by 38.2% during the financial year 2017-18. This is despite the fact that the government has increased the minimum support prices (MSPs) in several states.
At the end of the financial year 2016-17, the NPAs in the farming sector stood at Rs. 60, 161 crores. However, at the end of the financial year 2017-18, they had increased to Rs. 83,153 crores.
Photo credit: Sarath.kuchi on Visual hunt / CC BY-SA
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