The Land Development Bank in Maharashtra's Akola district staged a sit-in protest in front of the houses of several farmers who have defaulted on loan repayments.
The bank has suffered to such an extent that salaries of employees have not been paid.
The bank is not even in a position to start revenue recovery from farmers during the monsoons.
"We have to recover dues, specially from the farmers who are financially secure and can easily pay loans, but are not doing so," said R N Mishra, a revenue recovery officer of the bank, on Wednesday.
The Central government had recently said it would give banks 48.68 billion rupees to compensate them for offering cheap loans to farmers.
