# Agri loans emerge as biggest asset quality risk for Indian banks

- Source: Economic Times
- Published: 2026-11-09T00:58:11+00:00
- Category: Business
- Original: https://economictimes.indiatimes.com/markets/stocks/news/agricultural-loans-pose-major-asset-quality-risk-for-indian-banks-with-5-1-npa-ratio-in-q2-2026/articleshow/135667308.cms
- Canonical: https://groundlevelnews.com/story/agri-loans-emerge-as-biggest-asset-quality-risk-for-indian-banks-24ccfb/

Agricultural loans in India are currently facing significant asset-quality risks, with bad-loan ratios surpassing other sectors. The gross non-performing asset ratio for agricultural loans is at 5.1%, compared to 1.5% for industry and services. Factors such as a poor monsoon have contributed to this situation, although agricultural bad loans have declined since 2020-21. Various banks have reported

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