April 29, 2019

Bank of Maharashtra, a state-run lender, has decided not to extend loans in eight zones in Maharashtra and Madhya Pradesh which are hit by drought.


  • The bank cited high bad loans from agricultural advances in the branches of these zones for the decision.

  • According to the bank, the present condition of agriculture loans is pathetic, wherein gross NPAs under agriculture stood at 18.36%.

  • Among the eight zones, Aurangabad has the highest percentage of NPAs — almost 25% of advances — followed by Bhopal (21.4%), Solapur (19.1%), and Akola (16.5%).

  • Advances to the agricultural sector come under Priority Sector Lending (PSL). 

Source : The Hindu