Volume : V, Issue : III, March - 2015

INDIAN BANKING SECTOR & NON–PERFORMING ASSETS

Dr. Harish Chandarana

Abstract :

Indian public sector banks, that control three fourth of the assets of the Rs.83 trillion local banking industry are finding it very tough to recover their loan account from defaulting borrowers. Rising bad loans increases pressure on their profit & capital base and also reduce their ability to grow in a highly competitive environment. Gross bad loans of Indian banks grew at Rs.2.43 trillion at the end of December, 2013, approximate 36 per cent rise from last year. Which is only half of the total stressed asset pile. About Rs.4 trillion of loans are being restructured under the corporate debt restructuring mechanism and under bilateral restructuring. Together, such loan constitutes 11 per cent of the total advances of Indian banks.1 According to RBI data, stressed advances in the banking system increased to 10.7 per cent of total advances in September 2014 from 10 per cent in March 2014. “At 12.9 per cent of total advances in September last year, PSBs continued to record the highest level of stressed advances; private banks recorded 4.4 percent” RBI said in its latest Financial Stability Report.2 So, PSBs continued to record the highest level of stressed advance.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. Harish Chandarana INDIAN BANKING SECTOR & NON-PERFORMING ASSETS Indian Journal of Applied Research, Vol.5, Issue : 3 March 2015

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