Banks exposure to loans up by 85% in last 4 yrs: UBS report

Earlier today, UBS released its report on banks’ exposure to stressed assets that says non-performing loans (NPLs) have increased in the banking sector by 85 percent in last four years. 

The brokerage firm came to this conclusion after looking into original documents that were filed with registrar of companies by 100 top-stressed companies with debt. UBS has looked at the loan approvals and not loan disbursed for this research. 

CNBC-TV18's Latha Venkatesh says that major banks like ICICI, Yes Bank and Punjab National Bank (PNB) have high exposure numbers as per the report. The list also includes state owned banks, which are backed by immovable properties. Low exposure banks are HDFC Bank, IndusInd and Federal Bank.

As per the findings, Yes Bank, at 19 percent, has the highest loan approvals to NPLs followed by ICICI Bank at 14 percent. As per the brokerage's estimates, YES Bank's loan approvals to leveraged groups such as JP Associates, Essar and GMR are now equal to 13 percent of outstanding loans.