Cooperative banks in Maharashtra have reported a significant surge in agricultural non-performing assets (NPAs), driven by pre-election loan waiver promises and inadequate lending by public sector banks, media reports say.
As of March 31, 2025, agri NPAs in the cooperative sector rose to 24.11%, up from 17.85% in December 2024. Total NPAs reached Rs 8,214 crore, up from Rs 7,739 crore.
Statewide agricultural NPAs climbed slightly to Rs 31,253 crore, with the overall percentage increasing from 11.80% to 11.97%.
In contrast, public sector banks saw a decline in agri NPAs, dropping from Rs 18,940 crore in December to Rs 18,764 crore in March, and the NPA ratio fell from 17.08% to 16.73%. Experts cite political interference and unrealistic loan waiver expectations as key reasons.
