The government reported that bank advances have increased after the launch of agriculture loan waiver scheme.

At the same time, net non performing assets (NPAs) of the banks have also reduced down to 1%, stated the government.

Taking at the Rajya Sabha, Minister of State for Finance Pawan Kumar Bansal said, "Though overall NPAs of banks have come down, the net NPAs have come down to a record one percent."

He also informed that following the launch of loan waiver scheme, advances by the banks have increased to nearly Rs 21 lakh crore.

Mr. Bansal further added that the NPAs have come down to 2.3% in December 2008 against 15.7% in March 2008. Also the net NPAs during this period have slashed to 1% from 9.2%.

Also the government is worried about the cooperative credit structure of cooperative banks and therefore to support the segment, it has decided to undertake corporate restructuring of these banks, said the Minister.

In the latest announced interim budget, the government has estimated its total expenditure to increase by 20% in the current fiscal due to higher subsidy bill and farm loan debt waiver scheme.

Recently BJP promised farmers to waive off their loans if it gets the control at the Centre.