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HDFC Bank awaits farm loan waiver details after higher Q1 provisions

Experts warn that waivers could distort credit culture, pile up pressure on India's banking sector

Reuters  |  Mumbai/Bengaluru 

HDFC Bank Ltd said it was waiting for details on farm loan waiver plans announced by several states, after recording higher provisions driven by delinquencies in its agriculture loan book over the first quarter. Four key states including Uttar Pradesh, which has a population around the same size as Brazil's, have recently said they would waive off billions of dollars in farm loans to offer relief to farmers reeling from losses caused by bad weather. While the state governments will absorb the impact of the waivers, industry experts warn this could distort credit culture and ...

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First Published: Mon, July 24 2017. 20:00 IST