NPA Crisis

Moody’s sees slower pace of new bad loans

  1. Source: A report by Moody’s Investors Service
  2. India’s banking system is moving past the worst of its asset quality slump
  3. While the number of bad quality loans may still increase, the pace will start slowing
  4. 5 Key factors of analysis: Operating environment, asset risk and capital (stable), funding and liquidity, profitability and Govt support
  5. The operating environment for Indian banks is supported by a stabilising economy
  6. Headline GDP growth: Would be 7.4% over the next two years compared with 7.3% in 2015
  7. Key drivers: A favourable monsoon season, ongoing public investment, and continued growth in foreign direct investment

Discuss: Define the terms- Headline GDP Growth, Non Performing Assets

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