Gross non-performing assets shot up to 3.2 percent, while Gill also marked out a ₹10,000-crore portfolio as potentially stressed. The agency said the bank expects 50 percent of these potentially stressed loans to slip into NPAs and will provide more for the same going forward. On a pro-forma basis, the provision coverage ratio is at 33 percent of the stressed assets, it added. "The balance sheet clean-up will strain the bank's profitability in the next 12-18 months as it provides for these higher quantum of stressed assets," Moody's warned. Overall slippages jumped to ₹3,481 crore, including ₹552 crore to Jet Airways and ₹529 crore for the bankrupt infra lender IL&FS.

Source: Mint April 30, 2019 11:37 UTC