India expects bad debts at its banks could double after the coronavirus crisis brought the economy to a sudden halt, a senior government official and four top bankers told Reuters.
FILE PHOTO: A cashier displays 2000 Indian rupee banknotes inside a bank in Jammu, November 15, 2016. REUTERS/Mukesh Gupta/File photo
A fresh surge in bad debt could hit credit growth and delay India’s recovery from the coronavirus pandemic. India’s finance ministry declined to comment, while the Reserve Bank of India and Indian Banks’ Association, the main industry body, did not immediately respond to emails seeking comment. India has so far recorded nearly 40,000 cases of the coronavirus and more than 1,300 deaths from COVID-19, the respiratory disease caused by the coronavirus.Bankers fear it is unlikely that the economy will fully open up before June or July, and loans, especially those to small- and medium-sized businesses which constitute nearly 20% of overall credit, may be among the worst affected.
One of the sources, an executive director of a public sector bank, said that economic growth had been sluggish and risks had been heightened, even ahead of the coronavirus crisis. Bankers say the only way to stem the steep rise in bad loans is if the RBI significantly relaxes bad asset recognition rules.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Rise in virus cases in crowded Indian jails prompts concernsNEW DELHI (AP) — The spreading of the coronavirus in India's notoriously crowded prisons has prompted authorities to impose jail lockdowns and release thousands of pretrial detainees on parole, as...
Read more »
Rise in virus cases in crowded Indian jails prompts concernsHealth experts fear that crowded facilities such as prisons can prove deadly, threatening the lives of detainees and guards, as well as the outside population.
Read more »
Firefight leaves seven dead in disputed Kashmir province, Indian security forces say5 Indian security personnel and 2 militants were killed in a major spike in fighting in disputed Kashmir when the army and police stormed a house where rebels were holding hostages, officials say.
Read more »
How to watch 'iFor India' concert to help COVID-19 reliefMick Jagger and Nick Jonas are just some of the stars who will be featured in the concert live stream.
Read more »
India orders coronavirus tracing app for all workersIndia has ordered all public and private sector employees use a government-backed contact tracing app and maintain social distancing in offices as it begins easing some of its lockdown measures in districts less affected by the coronavirus.
Read more »
Mick Jagger, Will Smith to boost India coronavirus concertOrganised by Bollywood directors Karan Johar and Zoya Akhtar, the show will be live-streamed by Facebook and pay tribute to workers fighting the pandemic.
Read more »