Economy Slowdown leads to Non-Performing Assets in Indian Banks
November 20, 2008 – 7:49 pmTalk about the Business sector, and the latest news is the economy’s roller coaster ride! As the economy dips down, Indian Banking Industry witnesses profit slumps with its loans. There has been noticed a steep rise in the non-performing assets (NPA) which results in a sad phase in the Indian banking.
Industry insiders report that they had been smelling increasing default rates since September 2008. But it’s only now that the story has come up to the surface. If surveys are to be believed, there has been a 30% increase in the “loss-making companies” in the second quarter of the current fiscal year as compared to the previous fiscal. This is indeed a shocking news for the country where the FM and private sector banks console the public of a good industry growth.
But the good news however is the directions given by the Reserve Bank of India to the Indian banks. The direction is to continue to lend money, and transfer their bad assets in a separate account so that they can be dealt with later. Now that’s what’s called a perfect mix of optimism and sound discretion!
One Response to “Economy Slowdown leads to Non-Performing Assets in Indian Banks”
Thank you very much for sharing this information.Reserve bank have given the right direction to other Indian private banks to continue the lend money and transfer their bad assets in account.
By Non Performing Assets on Mar 7, 2009