NPAs to touch 10.5% by March as banks recognise entire stress

Crisil Ratings today said banks have only recognised two-thirds of their stressed loans as non-performing assets, and estimated the bad loan ratio to rise by 1 percentage point to 10.

Crisil Ratings today said banks have only recognised two-thirds of their stressed loans as non-performing assets, and estimated the bad loan ratio to rise by 1 percentage point to 10.5 per cent by March 2018.

The 9.5 per cent NPA figure for March 2017 includes only two-thirds of the overall stressed assets, it said.

The agency said it estimates the total amount of stressed loans, which includes NPAs and standard assets that are under pressure currently and could deteriorate into NPAs, to be at Rs 11.5 trillion or 14 per cent of the system. Assets under pressure comprise the not-yet-recognised bad loans, which are recognised as NPAs in one bank, but not in others, restructured standard accounts, and stressed assets structured under schemes, such as the strategic debt restructuring, the 5/25 and the S4A, it said. PTI

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