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Banks face $37 bn hit from top 50 stressed assets, says CRISIL

19 July, 2017

Indian banks may have to write off 60 percent of the value of bad loans from their 50 large stressed asset accounts, or a hit of 2.4 trillion rupees ($37.31 billion), ratings agency CRISIL said on Wednesday.

The 50 stressed companies, which account for 4 trillion rupees in soured loans, are largely from the metals, construction and power industries and account for nearly half of the total non-performing assets in the banking sector as of the end of March, CRISIL said.

The credit agency, part of S&P Global, estimated that banks have provisioned for only around 40 percent of their exposure to these assets.

Banks had total non-performing loans of about 7.29 trillion rupees, or 5 percent of India’s gross domestic product, as of end-March.

The report comes after rival India Ratings and Research had estimated banks taking 12 of the country’s largest defaulters to bankruptcy court would need to make additional provisioning of at least 180 billion rupees.

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1 Comment
Manas Rath . 4 months ago

How many of these companies are owned/promoted by politicians or politically close families, and what is the net worth of these promoter families?
Are these write offs just putting cash into pockets of powerful and connected business owners, while small businesses and individuals are hounded down by banks for small loans??

Banks face $37 bn hit from top 50 stressed assets, says CRISIL

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