MUMBAI — Indian banking institutions, currently strained with a high corporate debt that is bad face another danger with their stability sheets as state governments declare farm loan waivers to placate tiny and marginal farmers.
The western state of Maharashtra, which includes some 3.5 million farmers, could be the latest to announce waivers worth around 300 billion rupees ($4.65 billion). The government that is local after massive protests enduring days.
Maharashtra follows the state that is northern of Pradesh, which previously into the 12 months penned down agriculture loans of almost 364 billion rupees for some 21.5 million little and marginal farmers. Their counterparts in Madhya Pradesh, Punjab, and Tamil Nadu are actually demanding comparable concessions. (more…)Learn More