more-inIndian banks’ sour loans hit a record 9.5 trillion rupees ($145.56 billion) at the end of June, unpublished data shows, suggesting Asia’s third-largest economy is no nearer to bringing its bad debt problems under control. A review of Reserve Bank of India (RBI) data obtained through right-to-information requests shows banks’ total stressed loans — including non-performing and restructured or rolled over loans — rose 4.5% in the six months to end-June. ‘Retails NPAs worrying’To be sure, the bulk of India’s sour loans are in the state banks and stem from lending to large conglomerates, especially in steel and infrastructure. But analysts said the rise in bad loans among small firms, and even retail borrowing, is worrying and will do little to encourage new loans to help fuel growth. Stressed loans as a percentage of total loans reached 12.6% at end-June, according to the data, the highest in at least 15 years.

Source: The Hindu October 10, 2017 16:07 UTC