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Economy News

The Economic Times

Economy / The Economic Times

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Patchy rains may hit rural lending, banks stay cautious

Bankers are closely watching monsoon rains and their impact on rural credit. Uneven rainfall poses inflation risks for summer crops and rural incomes. A strong winter harvest offers some financial cushion for lenders. Early stress is visible in personal and micro-enterprise loan segments. Lenders may slow small-ticket loan delivery due to risk aversion.

29 Jul 2026 12:30 am