India's Bad Loan Rate Soaring to Near 10% Dwarfs China's

[Skull and Bones]

The waivers to farmers should be regarded as governmental subsidies (assuming the government to take over the responsibilities of payment) to the agricultural sector, similar to the gas subsidies. So I believe it wont be affecting the NPA positions. But it will increase the fiscal deficits.

You're right in this regard, but after the loan waivers, many farmers in other states stopped paying installments of their loans on the hope of government to waive them off.

http://timesofindia.indiatimes.com/...ns-in-hope-of-waiver/articleshow/59117193.cms

 

[Keel]

You're right in this regard, but after the loan waivers, many farmers in other states stopped paying installments of their loans on the hope of government to waive them off.

http://timesofindia.indiatimes.com/...ns-in-hope-of-waiver/articleshow/59117193.cms

the chickens come home to roost.