Agricultural lending risks rise amid non-performing asset concerns

Agricultural lending faces increasing pressure as non-performing assets (NPAs) are projected to rise across major banking sectors. In India, Care Edge Ratings expects agriculture gross NPAs of scheduled commercial banks to reach between Rs 1.9 lakh crore and Rs 2 lakh crore by March 2028, driven largely by weak monsoons. The agriculture GNPA ratio, which stood at 5.11% in June 2026, is forecasted to climb to as high as 6.4% in adverse scenarios involving poor rabi crops and state loan waivers.

In Ghana, Agricultural Development Bank PLC reported a 6.89% increase in profit after tax to GH¢301.71 million for the nine months ending September 2026. While profits rose due to lower credit-impairment charges and investment reversals, the bank faces a significant 66.32% non-performing loan (NPL) ratio. Despite the bottom-line growth, the bank experienced contractions in interest income, net interest income, and total revenue.