The study has further projected that banks’ restructured advances would also be as high as about six per cent by March, 2013. The further impact of the various external factors like – court interventions, delay in reforms, reluctance of passing cost to consumers, absence of clarity on various tax issues, have created an environment of uncertainty resulting in slow pace of economic activities.
Apart from this, growing slackness in performance of small and medium enterprises (SMEs) and agriculture sector are signs enough to show that banks’ NPAs are bound to rise, according to the study.
Besides, a strong deceleration expected particularly in fourth quarter of the current fiscal and first quarter of the next fiscal will also have a negative impact on asset quality of Indian banking industry.
The most popular citizen journalists' reports on merinews chosen automatically on the basis of views and comments
View more jobs