Banks’ bad loans may double by Sept, warns RBI

Reserves of 4 banks may dip below danger level

Banks’ bad loans may double by Sept, warns RBI

Four banks may fail to meet the minimum capital level by September if there is no resuscitation by the stakeholders.

Sandeep Dikshit
Tribune News Service
New Delhi, January 11

Bad loans of Indian banks may double by September this year despite a slight improvement in the gross non-performing assets (NPA) during the Covid era, according to an RBI report released on Monday.

Four banks may fail to meet the minimum capital level by September if there is no resuscitation by the stakeholders, it warned.

The warning came on a day the RBI cancelled the licence of Vasantdada Nagari Sahakari Bank. The Maharashtra-headquartered bank will be unable to pay its present depositors, said the RBI.

Stress tests by the RBI’s Financial Stability and Development Council showed that the gross NPA ratio of all banks may nearly double from the current 7.5%.

Don't Miss

Top Stories

Misconceptions being spread about January 26 tractor march, says Samyukta Kisan Morcha

Misconceptions being spread about January 26 tractor march, says Samyukta Kisan Morcha

Morcha leaders condemn inflammatory statements by ‘Sikhs for...

Farmers again reject govt’s offer of amending laws, want them repealed

Farmers again reject govt’s offer of amending laws, want them repealed

Ninth round of talks with Centre ends, deadlock continues; n...

PM doesn’t respect farmers, wants to tire out those protesting against agri laws: Rahul

PM doesn’t respect farmers, wants to tire out those protesting against agri laws: Rahul

The former Congress chief says his party will not step back ...

Suspected case of bird flu reported in Punjab's Dera Bassi

Suspected case of bird flu reported in Punjab's Dera Bassi

Samples sent to National Institute of High Security Animal D...

India all set for world’s largest Covid-19 vaccination drive on Saturday

India all set for world’s largest Covid-19 vaccination drive on Saturday

The vaccine will be first offered to healthcare workers, fro...

Cities

View All