Non-performing loans News

NPA in the banking system had peaked at 11.5 percent in March 2018 and then declined to 9.3 percent in March 2019.

Net non-performing loans as a percentage of total loans fell to 4.86 percent at end-June from 4.89 percent at March-end, but rose compared with 3.01 percent a year earlier.

Indian banks may have to write off 60 percent of the value of bad loans from their 50 large stressed asset accounts, or a hit of 2.4 trillion rupees ($37.31 billion), ratings agency CRISIL said on Wednesday.

Indian banks taking 12 of the country`s largest defaulters to bankruptcy court under a central bank directive, will need to make additional provisioning of at least Rs 180 billion ($2.8 billion), India Ratings and Research said on Tuesday.  

Indian banks will require Rs 91,000 crore in tier-1 capital till March 2019 to sustain a minimum annual growth rate of 8-9 percent, according to a report by India Ratings and Research (Ind-Ra).

Weak asset quality will continue to plague credit profile of banks, with their profitability remaining under pressure till the next fiscal, says a report.

India needs to privatise and change the character of its state-owned banks which have massive bad loans that have become a drag on economic growth, a leading financial expert said here.