Search
Growing Cab Aggregators, Farm Loan Waivers Pose Threat to Banks
August 16, 2017
According to PTI News, the banking sector in the country is burdened with Non-Performing Assets worth more than Rs. 8 lakh crores, out of which Rs. 6 lakhs crores concern the public-sector banks (PSUs). Although the government has taken strong action to check this problem, especially through the Insolvency and Bankruptcy Code (IBC) proceedings for the 12 biggest defaulters, there are several other pressure points to be taken care of.
For instance, the recent wave of farm loan waivers (as seen in Madhya Pradesh, Uttar Pradesh, and Maharashtra) is going to affect the bank’s loan books significantly. Similarly, the rise of cab aggregators Uber and Ola has led to a decline in an average taxi driver’s income, thus forcing the lenders to cut down on new car loans.
