Restructured loans will account for 3.5% of total advances: Crisil

BL:MUMBAI, APRIL 24:2012


The total amount of loans that are likely to be restructured by banks over 2011-12 and 2012-13 is estimated at nearly Rs 2-lakh crore, said Crisil.


Pointing out that a sizeable proportion of the restructuring comprises large-ticket corporate exposures, the credit rating agency said the total restructured loans will account for 3.5 per cent of the total advances as at March 2013.


Furthermore, banks' gross non-performing assets are set to increase to 3.2 per cent by March 2013, from 2.9 per cent as at December 2011.


Crisil has assessed that the large quantum of restructuring reflects the prevailing stress on corporate India's credit quality because of lower profitability, weak demand, and tight liquidity