Stressed assets: a consumer's perspective

Description

The rise in stressed assets (SAs) in banking sector can stress financial markets and citizens alike, and therefore, the Reserve Bank of India (RBI), the Central Government and commercial banks are trying to address the situation with utmost attention. Stressed assets are mainly high in public sector banks (PSBs), which are generally vulnerable to political pressures and have a social responsibility to lend to certain segments of economy. Accordingly, PSBs have SAs in the range of 17% when compared with 6% in foreign banks and 7% in private banks. However, higher SAs, though recorded in many sectors, are mainly concentrated in infrastructure, iron and steel, textiles, aviation and mining. Interestingly, high SAs are recorded in medium size (31% of total) and large industry (23%). In contrast, ratios of SAs in priority sectors and agriculture are low. Read more at: https://www.deccanherald.com/content/542489/stressed-assets-consumers-perspective.html

Publication Date

25-4-2016

Publication Title

Deccan Herald, Bangalore

Publisher

The Printers Mysore Private Limited

Keywords

Banking, Stressed assets, SAs, Financial markets, Reserve Bank of India, RBI

Source Link URL

https://www.deccanherald.com/content/542489/stressed-assets-consumers-perspective.html

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