Desk note · industry · Banking / rural credit
Reporting on 18 October 2026 said agriculture and rural lending lost share in many banks’ loan books in the September quarter of FY27, with lenders including RBL Bank and Federal Bank pulling back while deficient rainfall and El Niño risks make farm credit harder to underwrite.
On 18 October 2026, business press reviewed September-quarter results and found agriculture and rural lending losing share at several lenders. RBL Bank’s farm loan book shrank about 12% year on year to ₹1,367 crore in the second quarter of fiscal 2027, dropping the segment to 0.96% of total advances from 1.54% a year earlier. Federal Bank’s agricultural loans fell nearly 3% to ₹8,065 crore, reducing the share of overall advances by about 50 basis points. ICICI Bank’s agriculture portfolio grew just 1.7% to ₹32,333 crore, a muted pace compared with overall credit growth. Axis Bank and HDFC Bank were exceptions, with farm books expanding about 20% and 6.5% respectively in the same reports. Federal Bank chief executive KVS Manian told analysts the lender had not pushed growth in agriculture and would stay watchful on rainfall outcomes, geopolitics, rates, and inflation.
Farm credit is not a single market. Well-irrigated districts with diversified crops behave differently from rain-fed blocks where one weak monsoon can delay repayments. When lenders see deficient rainfall headlines and talk of El Niño effects, credit committees often tighten scorecards, shorten tenors, or shift focus to secured warehouse and dairy flows rather than fresh crop loans. That shows up as slower growth even when headline GDP looks steady. Borrowers in stressed pockets may face higher collateral demands or rely more on cooperative societies and NBFCs that specialize in rural collections. Policy schemes still exist, but commercial banks vote with their balance sheets quarter by quarter.
If you farm or run a rural small business, shop early for pre-season finance and compare terms across banks, NBFCs, and cooperative channels; a branch that chased agri growth last year may be selective today. Input dealers should watch whether tighter credit slows fertilizer and seed purchases after the festival season. Investors in bank stocks should read agri growth as a risk dial, not just a social mandate. Track monsoon updates, state crop-loan waiver chatter, and whether the cautious lenders re-accelerate once rainfall data firms up.
Telecom / IPO
On 22 October 2026, exchange data showed Jio Platforms’ ₹30,213 crore issue had drawn about ₹3.73 lakh crore of total bids by late evening on Day 2, with the retail portion oversubscribed and market commentators citing diverted cash from other listed stocks during the book build.
SEBI / market infrastructure
On 22 October 2026, the Securities and Exchange Board of India proposed letting stock exchanges and depositories fund core-market and regulator-mandated initiatives without prior approval for each ticket, while keeping board oversight and financial safeguards and inviting comments until 12 November.
E-commerce / food delivery
On 22 October 2026, reporting said Flipkart is testing an internal food delivery product called Eat-in by Minutes with more than 8,000 employees in Bengaluru, using Ekart logistics as it prepares to compete with Zomato and Swiggy in meal delivery.
Digital trust / compliance
On 22 October 2026, eMudhra Ltd said its board will voluntarily withdraw from the global SSL/TLS certificate segment after a key-security incident on eight intermediate certificates, citing compliance cost and weak economics while stressing that other digital-trust services continue.
For informational purposes only. Not investment advice. Verify with filings and a licensed adviser.