Rural cooperative banks have recorded the lowest level of Non-Performing Assets (NPAs) in Kisan Credit Card (KCC) loans, outperforming other banking channels.
In a reply in the Rajya Sabha, Minister of State for Finance Pankaj Chaudhary said data reported by the Reserve Bank of India and National Bank for Agriculture and Rural Development shows a consistent decline in the share of NPAs in KCC accounts over the past four years.
Among the three banking segments, Rural Cooperative Banks (RCBs) maintained the lowest NPA levels. Their KCC NPA ratio stood at 5.4% in March 2022, declining to 5.1% in March 2023 and 4.9% in March 2024, before marginally rising to 5.1% in March 2025.
In comparison, Scheduled Commercial Banks recorded NPAs of 15.1% in 2022, which declined to 13.9% by 2025, while Regional Rural Banks saw NPAs drop from 8.0% in 2022 to 4.4% in 2025.
The government also noted that banks can provide relief to distressed borrowers through restructuring, one-time settlements and other measures, particularly in areas affected by natural calamities.