Kisan credit card bad loans fall across banking channels

NON-PERFORMING ASSETS (NPAs) among Kisan Credit Card (KCC) accounts across various banking sectors have consistently declined in recent years, reflecting a strengthening credit culture and improved credit discipline in the agriculture sector, according to an official note.

- SANDIP DAS

Referring to data from the Reserve Bank of India (RBI) and the National Bank for Agriculture and Rural Development (Nabard), the agriculture ministry has stated that NPAs under KCC accounts for the commercial banks have declined from 15.1% in FY22 to 14.16% by December 31, 2024.

Correspondingly, NPAs in the KCC accounts of regional rural banks and cooperative banks have declined from 9.5% and 6.9% in FY22 to 7.1% and 6.5%, respectively, by FY24, it stated.

Through KCCs, farmers get timely and affordable credit for purchasing agricultural inputs such as seeds, fertilisers, and pesticides, as well as for meeting cash requirements related to crop production and allied activities.