Indian banks vulnerable to profit decline amid rising bad loans: IMF – The Indian Express

IMF said bank loan-loss reserves have fallen short of the expected loss on non-performing loans under the current debt-at-risk in India. (Source: Wikimedia Commons)

Indian banks are vulnerable to further decline in profits as they face slow credit growth and elevated non-performing assets, IMF has said, calling for additional and more timely action to deal with the problem of bad loans.

Banking systems are vulnerable to further declines in growth or profits, particularly in countries at later stages of the credit cycle (such as India), where slowing credit growth and risks from elevated levels of non-performing lo…

Read the full article at: http://indianexpress.com/article/business/banking-and-finance/indian-banks-vulnerable-to-profit-decline-amid-rising-bad-loans-imf-3068346/