Hard lessons for banks and FIs from a decade of bad infrastructure loans

Loans to the sector became huge NPAs largely due to the practice by lenders of offering unconditional mobilisation advance and time gap between preparation of a DPR and awarding the bid

How does a corporate loan become a bad one? Or, have the loan appraisals at banks improved, or is it just plain luck that the level of non-performing assets in the financial sector has come down! 

The process of loan evaluation is usually a black box. There are some exceptions. For instance, we know that the ratings of a company play a critical role in deciding the rates of interest that will apply. Or the classification of the sector as infrastructure. On the flip side, a high risk one affects the rates too. If it is the former, the rates dip