Sunday, December 13, 2015

Stress on bank loans reduced in first half FY 16

The banking sector saw a moderation in the pace of stressed asset formation from around 5.6 per cent in FY15 to 3.3 per cent in the first half of FY16, according to a report by ratings agency ICRA.
Including the exposure refinanced under 5/25 scheme, however, stressed assets formation remained high at about 5.5-6 per cent during the period.

Banks’ credit growth dropped to a multi-year low of 8.8 per cent and overall systemic credit growth (including corporate bonds and commercial paper) was higher at 11.6 per cent.

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