Within the agricultural sector, the share of fishing and livestock has gone up from 20.3 per cent to 29.3 per cent. Agriculture is getting increasingly diversified as floriculture horticulture and other value added activities gain importance.
They must also set internal targets to reduce their NPLs. This does not necessarily mean portfolio sales. The hard yards of engagement with distressed borrowers, workout, restructuring and right-sizing debt must also be cornerstones of successful NPL reduction. Banks should also be taking action through their accounts to reflect the reality of the collectability of long dated NPLs.