Bad loans are essentially loans in which the repayment from a borrower has been due for 90 days or more. The bad loans ratio for the retail loans of the bank as of September 30, 2017, stood at around 1.4 per cent. When it comes to loans given to the industry, the bad loans ratio stood at a whopping 38.5 per cent. Prima facie, loans given to the industry are by definition riskier than loans given to individuals in the retail sector. The owners of public sector banks — the taxpayers of India — make for the principal.

Source: dna November 11, 2017 02:03 UTC