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Fitch India affiliate sees banks adding $41 billion of soured loans by 2018/19
May 17, 2017 / 10:11 AM / 7 months ago

Fitch India affiliate sees banks adding $41 billion of soured loans by 2018/19

MUMBAI (Reuters) - Indian banks could potentially add as much as 2.6 trillion rupees ($40.58 billion) worth of soured loans by March 2019 to their existing pile, India Ratings and Research said on Wednesday.

Commuters walk past a bank sign along a road in New Delhi, India, November 25, 2015. REUTERS/Anindito Mukherjee/Files

The rating agency, an affiliate of Fitch, said it estimated Indian banks were sitting on unrecognised stressed loans worth 7.7 trillion rupees.

“While a sizeable proportion of the unrecognised stressed exposure has strong group linkage or some form of parental support, potentially half of it could further slip in the next 12-18 months,” India Ratings analysts led by Udit Kariwala wrote in a note.

As of end-December, banks in India had stressed loans of 9.64 trillion rupees, according to government data.

($1 = 64.0650 Indian rupees)

Reporting by Devidutta Tripathy; Editing by Biju Dwarakanath

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