India’s gross bad-loan ratio may rise to more than 10 percent by March 2018, the Reserve Bank of India said on Friday.
In the financial stability report released by the banking regulator, the RBI noted that the gross non-performing assets (NPA) ratio of the banking sector has already risen to 9.6 percent as on March 2017, from 9.2 percent as on 30 September.
Public sector banks continued to be the underperforming segment among scheduled commercial banks, as their gross NPA ratio showed a consistent rise since March 2013. NPAs in public sector bank loans to industries worsened to 22.3 percent as on March 31, 2017, from nearly 20 percent in September last year
Stressed Assets Ratio Improved
Stressed assets ratio in banks, however, showed some decline, coming down to 12 percent in March 2017, as compared with 12.3 percent in September 2016. The decline was owing to a reduction in the level of restructured advances on bank books, the regulator said.
However, stressed advances in the industries segment continued to worsen, rising to 23 percent of total advances in March, as compared with 22.3 percent in the same month last year. The ratio worsened primarily due to segments such as cement, vehicles, mining and quarrying and basic metals, RBI said.
More will update soon!!
