Concerns eases on restructured loans of Indian banks: Fitch
New Delhi: Global rating agency Fitch on Tuesday said economic recovery has eased concerns on restructured loans of Indian banks.
"Asset quality concerns stemming from the surge in restructured loans of Indian banks in 2008 and 2009 have eased as economic activity continues to improve," it said in a note.
Non-performing loans (NPLs) from Indian banks` Rs 1.2 lakh crore (about USD 26 billion) restructured loan portfolio are estimated at 15 per cent to 25 per cent now. This could lead to a moderate one percentage point increase in the gross NPL ratio of the Indian banking system, up from 2.4 per cent at end-September 2009, Fitch said.
The agency estimates that these NPLs will peak in the next financial year by when close to 75 per cent of restructured loans are expected to mature, and the resulting increased credit cost could impact return on assets (ROA) on average by a modest 13 basis points.
Four industries - textile, infrastructure, commercial real estate and steel - account for nearly half of the total restructured loans.
>"Since the larger private banks have relatively lower exposure to these industries, the extent of restructuring among private banks (2 per cent of loans) is markedly less than that of government banks (5 per cent)," it said.
Download the all new Zee News app for Android and iOS to stay up to date with latest headlines and news stories in Politics, Entertainment, Sports, Technology, Business and much more from India and around the world.
More from India
More from World
More from Sports
More from Entertaiment
- PM Modi addresses the nation during Maan Ki baat
- Delhi police arrests BSF personnel, ISI operative for espionage
- Kerala's Sunni religious leader calls gender equality ‘un-Islamic’
- Maharashtra: Shani Shignapur temple purifies after woman offers oil
- Panel discussion on P Chidambaram's remarks over ban on 'The Satanic Verses'
- Muslims worldwide had celebrated after 9/11: Donald Trump
- Reptile fossil explains how snakes lost their legs
- Video: India won't tolerate disrespect to national anthem – this Mumbai family learnt it the hard way
- Had Sardar Patel become PM, India would have been another Pakistan, says Kancha Ilaiah
- Watch: Boy dies after falling from a Mumbai local train – video maker is guilty too!