Banks feeling heat from bad loans

.....The situation looks set to worsen during the current financial year. Most PSBs have seen their gross non-performing assets as a percentage of advances increase by anywhere between 50 and 150 basis points between March quarter and June quarter this year. Based on the RBI’s estimate that 15 per cent of restructured assets may actually slip into bad loans, the NPAs from restructured loans may add another 90 basis points (15 per cent of 5.9 per cent) to the gross NPA of public sector banks. This would take their gross NPAs to more than 4.1 per cent for public sector banks by March 2013......

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