Farm loan write-offs touch Rs 4.7 lakh cr in last 10 years with new Mah offer: Report
   Date :14-Jan-2020

Farm loan write offs touc
VARIOUS States have cumulatively written off a whopping Rs 4.7 lakh crore of farm loans in the past one decade, which is 82 per cent of the industry-level bad loans, according to a report. In FY19, farm loan NPAs jumped to 12.4 per cent or at 1.1 lakh crore of the Rs 8,79,000 crore of total bad loans in the system, up from Rs 48,800 crore or 8.6 per cent of the total NPAs of Rs 5,6,6,620 crore in FY16, the report by SBI Research said.
“Even though agriculture NPA was only Rs 1.1 lakh crore or 12.4 per cent of the overall NPAs in FY19, if we accounted for Rs 3.14 lakh crore worth of farm loan waivers announced in the last decade, agri NPAs/burden for the exchequer/banks could be as much as staggering Rs 4.2 lakh crore and if the latest Rs 45,000-51,000 crore of write-offs announced by Maharashtra (second in three years) this it could be at Rs 4.7 lakh crore which is 82 per cent of the industry level NPAs,” the report claimed. It can be noted that since FY15, ten of the largest States announced farm loan waivers worth Rs 3,00,240 crore to alleviate the indebtedness of farmers and the spate of suicides.
If the numbers announced by the Centre under Manmohan Singh regime in FY08 is counted, this goes up to around Rs 4 lakh crore. Of this, over Rs 2 lakh crore have been made since 2017. In FY15 Andhra announced to write off farm loans worth Rs 24,000 crore, in the same year Telengana too did so involving Rs 17,000 crore. FY17 saw Tamil Nadu announcing write-offs of Rs 5,280 crore.
FY18 witnessed Maharashtra writing off Rs 34,020 crore; Uttar Pradesh (Rs 36,360 crore); Punjab (Rs 10,000); and Karnataka (Rs 18,000 crore), and another Rs 44,000 crore in FY19. In FY19, Rajasthan written off Rs 18,000 crore, Madhya Pradesh (Rs 36,500 crore), and Chhattisgarh (Rs 6,100 crore) and Maharashtra’s Rs 45,000-51,000 crore announced last month is the latest.