Banks’ Stressed Assets May Hit Rs 10 Lakh Crore in Q4 – Feedback

Stressed assets of banks may touch Rs 10 lakh crore in the fourth quarter of 2015-16 amid a slowdown in sectors such as steel and an ongoing asset quality review by the Reserve Bank of India (RBI), according to a report by industry body Assocham.

At the end of December, the total stressed assets (gross NPAs plus restructured assets) of all the banks were at Rs 8 lakh crore, which is expected to see a significant jump, the report said. “The slowdown in certain important sectors like steel, textiles and aluminium, and the ongoing Asset Quality Review (AQR) may push stressed assets of the banks to Rs 10 lakh crore mark in the fourth quarter of 2015-16,” the report said. An asset quality review undertaken by the RBI last December has resulted in a spike in bad assets with lenders recognising over Rs 1 lakh crore of bad assets in the December quarter alone.

http://profit.ndtv.com/news/banking-finance/article-banks-stressed-assets-may-hit-rs-10-lakh-crore-in-q4-assocham-1396453

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