In 2015-16 Union Budget, the government enhanced credit target for farm sector by Rs 50,000 crore to Rs 8.5 lakh crore. This was in line with a common perception that farm credit translates into the growth of the national economy. Statistically this might be unfounded, however it is undeniable that the farm sector that constitutes the core of the economy needs to be in focus of banks and other financial institutions.
When the euphoria of financial inclusion is at its peak, growing defaults by big businesses have brought the focus back on the alarming situation of the Indian banks balance sheets. Declaration of liquor baron Vijay Mallya as a "wilful defaulter" by United Bank of India highlights the growing stress among the banks.