Local operations of foreign banks had about $2.3 billion in stressed loans.Bankers have previously said that, while the number of non-performing NPLs kept rising after an asset quality review ordered by the central bank earlier this year, the overall number of stressed loans was not going up - instead, loans earlier restructured were falling into the NPL category.The numbers obtained by Reuters, however, show the overall number of stressed assets continuing to rise. "The impression we have is that the numbers are certainly going to go up," said Saswata Guha, a director at Fitch Ratings, which estimates Indian banks' total capital requirement to be as much as $90 billion through March 2019, with state banks accounting for the bulk of it.Guha estimated NPLs in the current financial year would rise by 35 to 40 percent. For the state banks it would be much higher, he said. "The pressure of provisioning is going to be very, very significant," Guha said. "I won't be surprised if some of the banks continue to report losses in the coming quarters.

Source: Economic Times October 10, 2016 12:00 UTC