Analysts say the rise in bad loans among small firms, and even retail borrowing, is worrying and will do little to encourage new loans to help fuel growth. Photo: MintMumbai: Indian banks’ sour loans hit a record Rs9.5 trillion ($145.56 billion) at the end of June, unpublished data shows, suggesting Asia’s third-largest economy is no nearer to bringing its bad debt problems under control. But analysts say the rise in bad loans among small firms, and even retail borrowing, is worrying and will do little to encourage new loans to help fuel growth. Stressed loans as a percentage of total loans reached 12.6% at end-June, according to the RBI data, the highest level in at least 15 years. According to RBI data, new loans grew at just about 5% in the year to March, the lowest growth rate in more than six decades.

Source: Mint October 10, 2017 13:30 UTC