Statsguru: Health of rural financial institutions

The RBI data shows that primary agricultural credit societies were in bad shape

While much attention has been paid to the deteriorating financial position of the public sector banks in India, the state of financial institutions catering to rural India also remained equally precarious.  

According to the recently released data by the Reserve Bank of India (RBI), non-performing assets (NPAs) of primary co-operative agricultural and rural development banks rose to 37 per cent at the end of FY16, up from 36.2 per cent before (Chart 1). In the case of state co-operative agriculture and rural development banks, while NPAs dropped in FY16, they continued to remain elevated (Chart 2). 

Marked variation existed