The banking sector is saddled with a massive $210b in problematic loans.
Reuters reports that chronic non-performing loan problem has pushed four Indian state banks to a combined $1.74b (117.29b rupees) loss in Q4 as the central bank tightened bad loan provisions and withdrew six loan-restructuring schemes in the past few months.
Also read: India's banking woes dampen economic outlook
Canara Bank Ltd reported its net loss was $723.17m (48.6b rupees) for the three months to March 31, compared with a net profit of 2.14b rupees a year earlier.
Allahabad Bank posted a net loss of $522,29m (35.1b rupees) and UCO Bank a $317.54m (21.34b rupees) loss. Dena Bank, the smallest of the four, made a net loss of $182.28m (12.25b rupees). Union Bank of India, also state-run, reported on Thursday a $384.35m (25.83b rupees) net loss for the fourth quarter.
India’s $1.7t banking sector is saddled with $210b of problematic loans especially in the power, steel and telecommunications sectors, further aggravated by a string of fraud scandals that caused public sentiment in state institutions to plunge to an all time low.
Here’s more from Reuters:
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