Drought Threatens Banks Retail Plans

Bankers are a worried lot as the spectre of drought looms large over the country. The concern is not so much about rescheduling agricultural loans in the drought-hit states, which has been standard practice. Some of them feel plans to get into retail financing in a big way may face a roadblock because consumer spending will be affected as the drought grips certain pockets of the country.

At least one large bank, which had put in place an aggressive plan to go all out on farm financing this financial year to steer credit growth, is reworking its strategy.