The Reserve Bank of India (RBI) has said that the ratio of bad loans has improved from last year and is expected to further decline in March 2019’s financial results. RBI governor Shaktikanta Das has, however, said that despite the improvement, the current levels of bad loans are still too high for comfort.
The 30-share index dropped over 85.77 points, or 0.24 per cent, to 35,982.56 in morning trade, after touching a high of 36,161.80 at the outset.
The crisis had an impact on the wider financial markets as risks from possible asset liability mismatches at other NBFCs got recognised.
RBI has placed 11 state-run banks, including Bank of India, Allahabad Bank, United Bank of India, Corporation Bank, IDBI Bank and UCO Bank, under the PCA framework.
The top 100 large borrowers accounted for 16 per cent of the gross advances and 21.2 per cent of GNPAs of banks, according to the RBI report.