NPADegradation
The Rise And Rise Of Stressed Loans 1. Stressed assets have been consistently rising for at least the past five years. 2. Rs9.64 trillion stressed assets choking the Indian banking system. 3. Despite a slew of schemes launched by the Reserve Bank of India (RBI), this growing pile of toxic debt continues to elude resolution. 4. According to the RBI’s December Financial Stability Report, large borrowers (the central bank defines these as debtors to whom lenders have an exposure of at least Rs5 crore) account for 56% of bank debt and 88% of their NPAs. PSB Share Of NPA Among the banks that own large NPA's 18 out of 20 banks are public sector banks and own 87% of total NPAs. According to the RBI's Financial Stability Report, 1. The industry's gross bad loans are at a 14-year high. 2. The asset quality of large borrowers deteriorated significantly. 3. The International Monetary Fund's Global Financial Stability report also indicated the same pr...