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Banks' NPAs may rise, says Central Bank of India

Central Bank of India Chairman and Managing Director S Sridhar on Tuesday said the industry’s non-performing assets (NPAs) are likely to increase, since smaller companies that borrowed when the rates were low would find it difficult to service their loans due to the increase in rates. “Some increase in NPAs cannot be ruled out in my view, across the industry,” Sridhar said, adding different banks would adopt different strategies to deal with the problem. The stress would emanate from smaller accounts, which “are not able to bear the increased cost of funding” ...