Newly elected Karnataka CM, BS Yeddyurappa has announced farm loan waiver for 1 lakh farmers. The Chief Minister announced his decision following the first cabinet meet that was held after his swearing-in ceremony.

Primarily focusing on agriculture, Yeddyurappa, while releasing the party manifesto, had promised a crop loan waiver of upto 1 lakh both, from PSU and co-op banks on the oath taking day.

However, the decision is likely to hit PSUs including the SBI, Canara Bank and Corporation Bank hard.

Bankers have claimed that the practice impacts adversely the credit discipline of the economy. They had further stated that the practice would create the expectation of further concessions even in the future.

Yeddyurappa had also announced that the party was planning to allot 1.5 lakh crore for irrigation.

In what looks like a push to PM Modi's Digital India programme, the party even decided to give away smartphones to women under BPL cards.