Saturday, March 23, 2013

Banking sector's asset woes to continue in FY14

.......Rate cuts, therefore, will not have any major impact on asset quality issues, as it won't ease pain for the seriously stressed. At present, bad and restructured loans account for a little more than 10 per cent of total system advances, believe analysts. This will impact the earnings of banks over the next 24 months, say experts. Higher provisioning and strict norms on recognition of bad loans will also impact profitability..........

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