Top 12 corporate NPAs cost exchequer twice as much as farm loan waivers

Farm loan waivers by state governments engender heated media debates and thus loom large in public consciousness, while use of government funds to infuse fresh equity into government-owned banks following large defaults by corporate borrowers goes nearly unnoticed.

This is unwarranted, the data show. The scale of the corporate non-performing assets (NPA) problem is of a higher magnitude, and corporate defaults have cost the public exchequer more than farm loan waivers. If recapitalisation of banks is welcomed, a farm loan waiver should be as acceptable.

In the financial year 2017-2018 and to date, 10 state governments have announced farm loan waivers totalling