Mumbai: The banking system has recently shown signs of moderate rise in instability due to increase in non-performing assets (NPAs), the Reserve Bank has said in a working paper.
"The movements in the banking stability indicator...that there are symptoms of a moderate rise in instability of the banking sector in recent periods perhaps due to the rise in the NPA," it said in a working paper on Banking Stability – A Precursor to Financial Stability.
The NPAs, or bad loans, of the Indian banking sector rose sharply to 1.28 per cent in 2011-12 from 0.97 per cent in the previous year, because of high interest rate and slowdown in the global economy.
For public sector banks, it rose to 1.53 per cent in 2011-12 from 1.09 per cent a year ago. Though private lenders reduced their NPAs to 0.46 per cent from 0.56 per cent.
Read more >> Click here
No comments :
Post a Comment