Cyclical downturns in Textiles, Steel and Real Estate continue adding to asset quality concerns . Power and Infrastructure company concerns could continue and balance sheet rported asstes as per new PSE systemisation to 3.5% and Total NPAs coul d be as high as 10% as per Fitch. 

Going forward Fitch reports on better days in light of the growth returning to the economy and seets position would not worsen for the larger banks esp not in agricultural sector but others where stressed assets have already fructified.

Towards end of the year pick up in loan growth but hthis year ends at 15% loan growth Reports continue to heighten fears of 10% of Total assets being visibl ein PSE systemisation unlikely to impact larger banks outside Public sector management

Posted via email from The India Investment Post