Farm loan waivers contribute to Bandhan Bank's rising NPA

Darjeeling standoff will add to the new lender's woes

Agri loan waivers in Uttar Pradesh, Madhya Pradesh and Maharashtra have not only added stress to HDFC Bank, which has considerable direct exposure in the sector in these states, but Bandhan Bank, which doesn't even have a direct agri exposure has also come under stress as a result of the government scheme.

The bank's gross non-performing asset (NPA) rose sharply to 0.82 per cent during the quarter ended June 30, 2017 as against the gross NPA of 0.38 per cent just a quarter back. On a year-on -year comparison, the gross NPA stood at 0.22 per cent during the first quarter