India’s stressed banks

Recently, Fitch Ratings—a credit rating agency—said that Indian banks’ gross non-performing loans (NPL) reached 4.2% for the financial year ending March 2013 from 3.75% in 2011-12. The total stressed assets (including restructured assets) in the system is expected to exceed 10% of total loans by the end of the current fiscal. That is not all. The entire banking industry has restructured 4.68% of loans till March. The top five government banks accounted for 39% and 46% of restructured loans and gross non-performing assets (NPAs), respectively, in FY12.

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