The problem of large-scale non-performing assets, or NPAs, in the banking sector is at the forefront of the policy debate. Kingfisher Airlines has been in the headlines, as has been the Supreme Court’s request for a list of willful defaulters. There is hope that the proposed Indian Bankruptcy Code (IBC) will solve some of these problems, and prevent such a build-up of NPAs in future owing to timely resolution of insolvency. All of these discussions have been about resolving corporate insolvency.
However, three important facts need to be borne in mind. First, agriculture constitutes a large part of total bank credit. Lending to agriculture increased between 2014 and 2015 by about seven per cent. There is …
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