Search
Stressed Assets May Rise to 15% by March 2018: S&P Global Ratings
June 12, 2017
Although the regulatory capital will keep on rising till 2019, the bad loans of the Indian banks will increase to 15% of the total loans by March 2018, S&P Global Ratings said in a recent report titled “No Quick Cure for India’s Banking Blues”.
According to Deepali Seth Chhabria, credit analyst, S&P Global Ratings, the performance of S&P rates public sector was below par in last fiscal’s March Quarter. Moreover, higher provisions resulted from a y-o-y increase in NPLs (Non-Performing Loans) and the capital to handle unexpected losses has also remained thin.
While the government has decided to inject Rs. 70,000 crore in PSU banks during 2016-2019, S&P Global Ratings believe that’s not enough.
