 "Economic Survey flagged concerns over power sector NPAs")
The Survey said a slowdown in credit offtake was more pronounced in the case of public sector banks than their private sector counterparts. The twin balance sheet problem (stress in both banks and companies) was responsible for slowdown in credit growth, it noted.
The gross non-performing assets (NPA) ratio of the banking sector rose from 9.2 per cent in September 2016 to 9.5 per cent in March 2017. Going forward, a shift in renewable energy will render some conventional energy assets “stranded” and this may raise banks’ NPAs further, the Survey said.
Already, the NPA ratio in exposures related to
