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Banks still bogged down by NPAs

Sudden spurt in bad loans in Q1 of FY18 brought back fears the worse is not over yet for the banks

Business Standard 

bad loans, debt, loan, banks, finance

Banks’ saw a spurt in 2015-16 following the Reserve Bank of India (RBI)-mandated asset quality review. In FY17, the slippages stabilised, raising hopes that the asset-quality deterioration would reach its peak. But, a sudden spurt in in Q1 of FY18 has brought back fears that the worse is not over yet for the

What caused the spurt in in Q1

  • End of forbearance for small loans after demonetisation 
  • Repayment held back for farm loans in hope of waivers 
  • State Bank of India’s recovery efforts hit by bank merger transition 
  • Corporate slippages from watch lists and outside of those lists
bad loan

bad loan

First Published: Sat, August 19 2017. 20:52 IST