Don't see Karnataka loan waiver impacting repayment culture: Bharat Financial

Maharashtra, Punjab and Uttar Pradesh (UP) have already announced much more massive farmer loan waivers worth Rs 30,000 crore, Rs 10,000 crore and Rs 36,000 crore respectively. Now reports suggest that Karnataka has waived farmer loans worth Rs 8,167 crore.

"We have about 15 percent exposure in Karnataka but this loan waivers (UP, Maharashtra and Punjab) has no impact on our repayment rates because our loans are for small businesses and we don’t lend directly to the farming community," MR Rao, MD & CEO of Bharat Financial Inclusion told CNBC-TV18.

Post Maharashtra and UP loan waiver, the company saw marginal improvement in collection rates. “We do not see Karnataka loan waiver impacting our repayment trend,” he further mentioned.

Normally, you would see the impact in the first few days itself and we have not seen any impact in UP and Maharashtra, said Rao.