Summary:
The private bankers are still low on lending credit to farmers, but their stakes are increasing.The bankers said the non-performing assets (NPAs) were a major worry among private banks. The bankers were, however, taking cautious steps, an official said.“The returns from agriculture are unpredictable. They also said there was pressure from the district administration for giving loans to farmers but recovery was a major issue. “The picture is changing and hence the institutionalized loan is reaching the agriculture sector,” the official said. At the same time the Reserve Bank of India guidelines about the NPAs were strict and hence the private banks were hesitating to increase their share in lending,” an official from a private bank said.At the last meeting, the collector had asked the tahsildars to take lead in the process and there has been a major change since then..