Bad loans of 41 banks may touch Rs 9 lakh crore by March 2018, says report

The amount was Rs 7.65 lakh crore at March-end this year.

The stressed loans in India are set to mount in the times to come, if not addressed by the government. 
 
According to ICRA, a credit rating agency, the gross non-performing assets (GNPAs) of 41 banks are likely to reach Rs 8.8-9.0 lakh crore by March next year.
 
The amount was Rs 7.65 lakh crore at March-end this year.
 
At Rs 1.15 lakh crore, fresh non-performing assets during the June 2017 quarter were the highest in the last five quarters. The slippages were across corporate, medium and small enterprise (MSME) and agricultural segments, said the rating agency.
 
The report predicted fresh slippages at Rs 3 lakh crore during FY18. 
 
Higher slippages in the agriculture and MSME sectors can be attributed to farm loan waivers by the state governments and expiry of dispensation allowed on classification of overdue small-ticket loans post demonetisation as NPAs. 
 
The transient impact of GST, too, resulted in the NPA increase, the report observed.
 
Source: Moneycontrol.com

Event date: 
Friday, September 1, 2017

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