Banks' non-performing loans to peak in March 2016: Fitch

Source : REUTERS
Last Updated: Fri, Sep 27, 2013 09:17 hrs
A plaque is pictured at the entrance of the Fitch offices in downtown Milan

Ratings agency Fitch said non-performing loans at Indian banks are expected to peak as late as March 2016, compared with its earlier estimate of the middle of current fiscal year that started in April.

The initial expectation was for non-performing assets to peak around now but this has been pushed back by recent macroeconomic developments, Saswata Guha, director in the Financial Institutions team at Fitch, said on a conference call.

Earlier this week, Fitch downgraded the viability ratings on three state-run banks including Punjab National Bank and Bank of Baroda citing concerns about a protracted economic slowdown, high "stressed assets" and low capital.

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