Saturday, November 26, 2011

Rate hikes and other factors driving up NPAs

...The increase in interest rates when growth has visibly slowed down affects the capacity of borrowers to service their debts to banks. Consequently, the NPAs of PSBs has increased sequentially from 1.92 per cent of gross advances in the quarter ended March 2011 to 2.11 per cent in quarter ended June 2011 and 2.36 per cent for the just concluded September quarter......

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