Of Special Interest
- Financial wellness affects half of peoples’ mental or physical health, finds report
- Study finds traditional financial institutions embrace Fintech disruption
- Grass is greener for environmentally friendly businesses, finds Barclays
- Prospective homeowners would consider a 40-year mortgage to escape renting, finds Santander
- Millennials’ needs are changing the face of banking industry, says new report
- FS is putting consumer data at risk by failing to protect mobile apps, says Arxan
- A lack of belief in their ability holds 28% women back in work, says Cambridge & Counties
- ‘Which?’ reveals Scotland has lost over a third of its bank branches in eight years
- Next downturn unlikely to be as bad as 2008, according to S&P
- FCA reveals findings from first cryptoassets consumer research
- US consumers favour single mobile app for banking and payments
- Banks suffering major IT shutdowns every day, ‘Which?’ reveals
- The US will be a key offshore centre in 2019, says GlobalData
- Debit industry changes markedly in 10 years of the Debit Issuer Study
- UK's ‘Big Five’ face ‘too big to compete’ as small challengers secure stellar returns
- Banks as vulnerable now as before crash, says new study
- Leverage ratio a constant conundrum for European and US banks, says SNL
15th November 2011
Indian bad debts rise by one third in 12 months
A recent analysis of 37 listed Indian banks showed gross NPA of Rs 1.06 lakh crore (Rs 1.06tr = €15.5bn £13.3bn $21.1bn ¥1.636tr Y134.1bn) at September 30th, a 34% increase on a year ago.
Certain parties have blamed the reserve bank and government because in an attempt to control inflation there have been 13 increases in the central lending rate. This simplistic analysis does not consider the consequences if the economy had been allowed to continue at an unsustainable rate most likely leading to a larger asset bubble. Another government related effect is a more serious issue, which has been the long delay in agreeing certain infrastructure projects which has led certain parties involved exposed.
Reported NBA increase by bank varies from 46% for State Bank of India, the largest bank and majority state owned to 0.39% for ICICI, the largest private sector bank. Although the private sector banks usually outperform the state owned banks the scale of the difference may bring into question whether there may be a growing hidden problem waiting to emerge within the private banking sector.