The banking sector’s bad loan situation is getting
grimmer with non-performing assets ballooning and outpacing credit
growth.
The gross NPAs of 19 banks in absolute terms touched a high of
₹2.6-lakh crore in the September quarter compared with ₹2.3-lakh crore
in the three months ended March 2015.
This is the highest in the past 10
years.
The total gross non-performing assets of 19
banks, which form part of indices such as Nifty Bank and Nifty PSU Bank,
went up 13.3% in the September 2015 quarter from the March
quarter.
In the same period, total gross advances rose only 2.5 %
Note
Diversion of funds to unrelated business or fraud, lapses in initial
borrower due diligence, and inefficiencies in the post-disbursement
monitoring process are the main reasons
.
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