Bank of Baroda agricultural NPAs rise 11.6% year on year to ₹9,128 crore
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims·
Agricultural credit risk and monsoon variability: a key GS3 Economy and Banking sector case study.
Why in news
BMI Research reported that agricultural non-performing assets (NPAs) remain a stress point in the Indian banking system due to a weak southwest monsoon.
Background
In Q2 2026, the gross NPA ratio for agricultural loans reached 5.1%, significantly higher than the 1.5% for industry/services and 1% for retail. Bank of Baroda's agricultural NPAs rose 11.6% year-on-year to ₹9,128 crore, accounting for 34% of its total slippages.
Facts for Prelims
- FactGross NPA ratio for agricultural loans in Q2 2026: 5.1%
- FactSystem-wide gross NPA ratio in Q2 2026: 1.8%
- FactBank of Baroda agricultural NPAs: ₹9,128 crore (11.6% YoY rise)
- FactSMA-2 classification: Accounts with repayments overdue by more than 60 days and up to 90 days
- FactIndia's southwest monsoon ended 12.6% below its long-period average in 2026
Prelims practice question
What is the gross NPA ratio for agricultural loans as of Q2 2026?
- (a)5.1%
- (b)1.0%
- (c)1.5%
- (d)1.8%
Show answer
Answer: (a) 5.1% — The note states the gross NPA ratio for agricultural loans reached 5.1% in Q2 2026.
For Mains
Q. Analyze the structural challenges in managing agricultural NPAs in India and suggest measures to mitigate the impact of climate-induced stresses on farm credit.
Dimensions to cover in your answer
- Climate-credit nexus: High sensitivity of farm credit to monsoon variability and drought-prone geographical exposure
- Regulatory relief mechanisms: Role of State Level Bankers' Committees in restructuring and moratoriums for distressed borrowers
- Asset quality divergence: Disparity between industrial/retail NPA ratios and agricultural outliers
Keywords: Non-Performing Assets · Farm Credit · Monsoon Variability · SMA-2 · Credit Risk · Asset Quality
More Economy notes
- Banks must bear currency risks as RBI hedging facility excludes FCNR(B) deposits · 9 November 2026
- Indian startups sell "hired grandchildren" to combat loneliness for elderly population · 8 November 2026
- SEBI study finds 93 per cent of individual equity F&O traders incurred losses · 8 November 2026
- RBI data shows demonetisation had little impact on reducing cash in circulation · 8 November 2026
- RBI dismisses misleading claims about new cheque book security standards starting January 1, 2027 · 8 November 2026
- Ministry defends 20% ethanol-blended petrol after Karnataka claims of 31% levels · 7 November 2026
Something wrong, or something missing?
Spotted a mistake in a note, or want a topic, format or PDF that would help your preparation? Write to us. We read every mail and fix errors fast.
This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.