-Business Standard A clear picture is likely to emerge only towards the end of June Mumbai: Rural distress owing to heavy unseasonal rains in March and the prospects of less-than-normal monsoon have made bankers “a cautious lot” at the start of this financial year. However, it is too early to conclude that the impact of rains, or the lack of it, would be bad. According to public sector bank executives, the assessment for...

A recent press release from the Ministry of Agriculture shows that the area affected by recent rains and hailstorms is estimated to be 189.81 lakh hectares (on 24 April 2015), which is nearly double the total area affected that was earlier estimated on 16 April 2015. (See the link below). Experts argue that such extreme weather events may severely damage food economy of the nation, apart from breaking the spirit...

-The Indian Express A little more than a week ago, World Bank chief Jim Yong Kim praised Prime Minister Narendra Modi for launching the Pradhan Mantri Jan-Dhan Yojana (PMJDY), which he called an “extraordinary effort” at financial inclusion. According to the Union finance ministry, India has attained 99 per cent financial inclusion, measured as households’ access to bank accounts. Within three months of launching the PMJDY, the government entered the Guinness...

-Livemint.com/ India Ratings Report by India Ratings & Research Non-performing loan ratio of agriculture loan portfolio could double for some banks The asset quality of India’s agricultural credit could be significantly affected by crop damage due to untimely hail and rain in March, according to India Ratings and Research. The non-performing loan (NPL) ratio of the agriculture loan portfolio could double for some banks, though the reduction of overall return on average assets...

-Livemint.com The RBI norms towards targeted marginal lending for the small farmer is a structural solution to aid them—unlike bailout packages, which provide only short-term relief In its latest overhaul of priority sector lending rules, the central bank has stipulated that lenders should funnel at least 8% of their credit to small and marginal farmers. While the overall agriculture loan growth has galloped over the past decade, the chart shows why...