Early Q2 results flag continuing asset quality pressures at banks
The risk is high especially from the real estate sector where credit from NBFCs has been choked off. Starved of liquidity, builders are struggling to pay their non-bank lenders, who in turn are defaulting on their dues to banks.
October 23, 2019 / 10:33 AM IST
For some time it seemed that banks had recognised all the stressed assets in their books and the focus will turn to resolution. Even the Reserve Bank of India in its June 2019 Financial Stability Report had predicted that the gross non-performing assets ratio of scheduled commercial banks may decline from 9.3 percent in March 2019 to 9 percent by March 2020. But that theory has been shot to bits by the continuing NBFC crisis and a deepening economic...