ICRA has done a detailed study on the asset quality and performance of the 40 banks
The banks are not likely to see improvement in their asset quality and related performance metrics over the medium term.
Mumbai: The banks are not likely to see improvement in their asset quality and related performance metrics over the medium term. “Delayed recognition of stress in power, iron and steel and sugar may continue to impact the asset quality and related performance metrics over the medium term,” says credit rating agency ICRA, adding that they had to create total credit provisions of around Rs 2,30,000 crore made over the last three financial years (FY2013-FY2015).
ICRA has done a detailed study on the asset quality and performance of the 40 banks — 26 public sector banks (PSBs) and 14 private sector banks — that account for more than 90 per cent of the total credit portfolio and deposits of all scheduled commercial banks in India as of end of June 2015.
The credit offtake of the banks dropped to a multi-year low of 8.5 per cent (year-on-year growth) in June 2015 versus 13.4 per cent (YoY) in June 2014 as better rated corporate entities moved to less costly capital market sources (bonds and commercial paper). Overall systemic credit growth (including corporate bonds and commercial paper) was 11.9 per cent as in June 2015 versus 12.9 per cent as in June 2014.
( Source : deccan chronicle )
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