Tribune press service
Vijay C Roy
Chandigarh, August 18
Non-Performing Assets (NPA) of Punjab banks in the agriculture sector declined by Rs 863 crore over the past year, clearly showing that the sector has been the least affected by the pandemic.
According to the data, as of June 30, NPAs of state banks under agricultural loans stood at Rs 9,451 crore, or 11.26% of the total outstanding agricultural advances. Whereas a year ago (as of June 30, 2021), these accounted for 13.27% or Rs 10,314 crore of the total amount outstanding. The decline in NPAs clearly indicates an improvement in the recovery of loans from the agricultural sector.
Further, the level of NPA as a percentage of total advances increased from 3.51% in June 2021 to 2.99% in June 2022. Total agricultural advances outstanding in Punjab were in the range of
Rs 83,963 crore as of June 30 compared to Rs 77,753 crore during the corresponding period of the previous year. According to data from the State Bankers Committee, at 29.6% of total advances in the agricultural sector, Bank of India’s NPAs were the highest among all other banks, followed by Bank of India. India (26%) and the Punjab National Bank (25.72%). hundred).
According to sources, the NPAs of public sector banks were higher because they have a huge loan exposure compared to others.
Agriculture and the related sector are a source of income for 26% of the working population of the state. The drop in NPAs clearly reflects the fact that farmers’ incomes were the least affected during the period. Development is gaining prominence as in many states, NPAs under the agricultural sector are on the rise. For example, in June this year, the Reserve Bank of India was concerned about the increase in NPAs for agricultural loans in Haryana. Disturbed by the question, he had asked bankers to ensure effective control of NPAs and the reduction of their levels by taking appropriate measures in this regard. Unsustainable credit growth in the sector may pose a risk to the system, say bankers
11.26% of current agricultural advances
According to the data, as of June 30, NPAs of state banks under agricultural loans stood at Rs 9,451 crore, or 11.26% of the total outstanding agricultural advances. Whereas a year ago (as of June 30, 2021), these accounted for 13.27% or Rs 10,314 crore of the total amount outstanding.
