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India's bad loans could be more than New Zealand's $170 bn economy

Banks' loan growth at 10.7% in last fiscal year ended March 31, was slowest in nearly two decades

Bad Loans

Reuters  |  Mumbai 

India's bad-loans problem looks much worse than lenders have been willing to acknowledge, heaping pressure on banks' profits and further tightening the screws on distressed debt that could be bigger than New Zealand's $170 billion economy. The magnitude of the debt-mess was laid bare late last month when two of India's largest private sector lenders provided unprecedented guidance on non-performing loans, underscoring repeated warnings by Reserve Bank of India's governor Raghuram Rajan on the need to clean up banks' balance sheets. The dangers are clear ...

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First Published: Thu, May 12 2016. 18:33 IST