The banking sector in the country is under severe pressure due to the loan waiver announced by Andhra Pradesh and Telangana governments. As a result of these freebies, the farmers have stopped paying loans and at the same time governments are facing tough time pooling in the required funds. Due to this issue, the results of the banks are getting affected and the effect is being shown on their shares plundering in the markets.
In the wake of 5 states going to assembly polls later this year, bankers are in fear that political parties will come up with similar promises which will kill the good banking system in the country and discourage repayment culture which will be detrimental to the existence of banking in the country. So the Bankers are planning to approach the Election Commission seeking a ban on pre-poll announcement of loan waivers.