While the second half of FY16 should not be taken as the base for predicting the future performance of banks, significant NPA recognition in H2, FY16 could take up the gross NPAs to 6.2-6.8 percent by March 31," rating agency's group-Head (financial sector ratings) Vibha Batra said in a report.
Enhancing capital spending while maintaining Fiscal Discipline to be watched for in Union Budget 2016-17
LIC Housing to further trim bank borrowings to 11-12%: CEO
A recovery in India's credit growth could elude the country's banks until early 2016, despite an economy that in the first three months of this year is expected to have outpaced China.
It estimated the total housing credit outstanding as of December 2013 at over Rs 8.6 trillion (Rs 8.6 lakh crore) as against Rs 7.5 trillion as of March 2013.
Vibha Batra of ICRA believes that priority sector targets and current account/saving account (CASA) build up will be key to the success of these NBFCs.