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Rise in Indian banks' bad loans 'unacceptable': Chidambaram

The rise in bad loans at Indian banks is 'unacceptable,' finance minister P Chidambaram has said, adding he expects their non-performing assets (NPAs) to reduce when the pace of economic growth picks up.

india Updated: Oct 22, 2013 15:22 IST
Reuters
P Chidambaram,NPAs,Indian banks

The rise in bad loans at Indian banks is 'unacceptable,' finance minister P Chidambaram has said, adding he expects their non-performing assets (NPAs) to reduce when the pace of economic growth picks up.

Indian state-run banks' credit growth has been "satisfactory" and is expected to remain so for the rest of the fiscal year, while housing loans have shown a "very healthy" growth, P Chidambaram told reporters on Tuesday.

A slowing economy has adversely affected the demand for credit and led to a rise in bad loans at Indian banks. Net NPAs to net advances ratio of state-run lenders slipped to 1.8% at end-March 2013 from 1.5% a year earlier.

Rising bad loans have made banks more wary in lending, impeding the supply of domestic credit.

First Published: Oct 22, 2013 15:17 IST