Sreedev Krishnakumar

The RBI’s latest Financial Stability Report shows bank balance sheets at their healthiest in a decades. But one red flag stands out: agriculture now accounts for the largest share of bad loans, far exceeding its share in overall bank credit. We looked at the numbers in detail.

Read online: https://www.hindustantimes.com/india-news/bitter-harvest-the-rise-of-bad-loans-in-the-agriculture-sector-101767420266567.html

#MastIndia #India @mastodonindians #RBI #Agriculture #FarmLoans #Credit #AgriculturalLoans #NPAs #Banking #Finance #Economy #DataViz

Jan 3 at 6:37amWeb
Show threadAnand PhilipJan 3
@sreedevkkumar Hey, good analysis, is there something about the fraction of the sum that agriculture forms? i see that most defaulting agriculture loans are in the tiny ticket size, what is the impact of the bad loans from a total outstanding sum or something that adjusts for the amount not just the count?
Show threadSreedev KrishnakumarJan 3
@anandphilipc Data publicly available through RBI and CMIE (which is what we have used) reports NPAs by value, not by number of accounts, and agricultural NPAs form a disproportionately large share even on a value basis. However, because agricultural credit is dominated by small-ticket loans, this rise likely reflects widespread small-scale distress rather than a concentration of very large defaults.
Show threadAnand PhilipJan 3
@sreedevkkumar thank you. that is interesting. i didnt realize that we gave out so many agricultural loans. somehow, the number of loans must be much larger than the number of farmers no? does this mean that the average farmer in India has half a dozen NPA loans?
Show threadAnand PhilipJan 3
@sreedevkkumar is the total number of loans in each cateogry available? im not able to get an idea of the system withouth that.
Show threadSreedev KrishnakumarJan 3
@anandphilipc no data on number of loans, only by their overall value, unfortunately.
Show threadAnand PhilipJan 3
@sreedevkkumar must be frustrating to have to report on things without basic data access! hope things have gotten better over the years?
Show threadSreedev KrishnakumarJan 3

@anandphilipc we make do with what we get.

Things have improved in some aspects and worsened in some others. So the actual answer to that question could quite honestly change based on the day you are asking.

Show threadAnand PhilipJan 4
@sreedevkkumar of course. Good luck Hope to see more of these. cheers.