Even with the festivities around, Indian banks remain in gloomy scenario as bad loans hit a record Rs 9.5 trillion (USD 145.56 billion) at the end of June, unpublished data shows. But analysts say 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 percent at end-June, according to the RBI data, the highest level in at least 15 years. According to RBI data, new loans grew at just about 5 percent in the year to March, the lowest growth rate in more than six decades. Fitch Ratings estimates Indian banks will need USD 65 billion of additional capital by March 2019 to meet Basel III global banking rules.

Source: dna October 11, 2017 09:33 UTC