Banks will take Rs27,400 crore hit if BJP sticks to UP farm loan waiver promise: SBI
SBI’s research report has therefore suggested that instead of waivers, farmers should be brought under the Pradhan Mantri Jan Dhan Yojana so that government benefits reach them directly. Photo: Reuters
If the Bharatiya Janata Party (BJP) government in Uttar Pradesh goes ahead with its poll promise of waiving loans to small and marginal farmers, banks will have to take a hit of Rs27,419.70 crore, said a research report. That impact, of course, will be temporary, as the state government will step in to reimburse lenders. But in turn, Uttar Pradesh’s fiscal arithmetic will get stressed as these loans account for about 8% of its revenues, said the State Bank of India (SBI) report.
Credit: www.livemint.com