The chart shows the spike for these six lenders, whose combined bad loans top Rs.1.3 trillion, in the last couple of quarters. One, with the economy showing signs of improvement and even corporate earnings coming off their bottom, what explains this sudden surge in bad loans? Over the weekend, six state-owned banks reported a combined increase in bad loans of Rs.24,622 crore in the March quarter. They have been the ones repeatedly highlighted by banks as responsible for the rise in bad loans. Bank of Baroda has said that it has suspect quality loans worth Rs.26,900 crore, of which 57% could potentially turn bad this financial year.

Source: Mint May 15, 2016 13:48 UTC