Recently the banks have seen a rise in agriculture NPAs Non Performing Assets What could be the reas...........

Economic Affairs Types of Banks and Banking

Recently, the banks have seen a rise in agriculture NPAs (Non-Performing Assets). What could be the reasons behind this rise?

1. Vagarant nature of monsoons

2. Expectations of Loan Waivers

3. Reducing size of landholdings

4. Spike in global prices of agricultural commodities

Select the correct answer using code given below

All of the above

2 and 3 only

1, 3 and 4 only

1, 2 and 3 only

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Explanation:

Expectations of loan waiver prompt farmers to default on loans. Moreover, it has a domino effect such that farmers from different states demand loan waivers.
Depressed global prices for farm commodities has rendered agri-exports from the country relatively uncompetitive, while also exposing farmers to the threat of increased imports.