Web Exclusive | September 2017
2/3rd of stressed loans already recognised as NPAs by banks: CRISIL
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The stressed assets include both reported gross NPAs and standard assets that are under pressure currently and could deteriorate into NPAs over the medium term. The assets under pressure mostly comprise not-yet-recognised bad loans (recognised as NPA in one bank, but not in others), restructured standard accounts, and stressed assets structured under schemes such as SDR, 5:25 and S4A. CRISIL expects gross NPAs in the banking system to be approximately 10.5 per cent of advances as of March 2018, up from 9.5 per cent as of March 2017. Faster resolution of stressed accounts through the Insolvency and Bankruptcy Code and various structuring schemes, therefore, is critical to improving the asset quality of banks.