The RBI (Reserve Bank of India) expects NPAs (NonPerforming Assets) to continue to rise as high as 11.1% of total outstanding loans by September 2018. Private Banks' NPAs also increased (up to March 2017) by almost 41% , as compared to 17% in the case of public sector banks at the end of September 2016.
As reported in the editorial of the Hindu (dated December 29, 2017) future credit cycles will continue to stress the banking system unless there are systemic reforms that address the problem of unsustainable lending and simultaneously RBI given greater powers to regulate the public sector banks efficiently and also by reducing state ownership as expected by the International Monetary Fund.
A tough task indeed to be tried successfully for better days ahead!
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