The 93% reported fall in profits from Punjab National Bank has returned the spotlight to the issue of bad loans in India, as its banking system struggles under $100bn of stressed loans, which is in turn impacting economic growth. Although state-run banks, who account for 70% of all outstanding bank loans, have borne the brunt, private lenders such as ICICI Bank have also been hit. The banks have been asked to make required provisions during the third and fourth quarters of this fiscal year ending in March. In a report released on Wednesday, Credit Suisse said that banks had suffered losses worth Rs 1.06 lakh crore ($3.9bn) since April 2015, with most of this loss coming due to non-performing A large proportion of the loans being written off are from the steel and power sectors.
The 93% reported fall in profits from Punjab National Bank has returned the spotlight to the issue of bad loans in India, as its banking system struggles under $100bn of stressed loans, which is in turn impacting economic growth. Although state-run banks, who account for 70% of all outstanding bank loans, have borne the brunt, private lenders such as ICICI Bank have also been hit. In a report released on Wednesday, Credit Suisse said that banks had suffered losses worth Rs 1.06 lakh crore ($3.9bn) since April 2015, with most of this loss coming due to non-performing A large proportion of the loans being written off are from the steel and power sectors.