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Indianomics: Using govt funds to clean up NPAs not preferable, says Shah

Non-performing assets (NPAs) of banks have shot up to 9.5 percent in the third quarter of this fiscal from 9.1 percent in the previous and 8.5 percent in the March quarter.

February 28, 2017 / 12:30 IST
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Deputy governor of RBI, Viral Acharya's concern over the bad loan problem hurting India's public sector banks (PSBs) may not an exaggeration.

Non-performing assets (NPAs) of banks have shot up to 9.5 percent in the third quarter of this fiscal from 9.1 percent in the previous and 8.5 percent in the March quarter.

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Post the December quarter, Credit Suisse says 41 percent of the companies they track earned less than their interest outgo.

Also, growth is not helping either. As earnings of corporate India rose by 9 percent in Q3, the stressed companies tracked by Credit Suisse reported Rs 15,000 crore of losses.