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NPAs to dip to Rs 9.1 lakh cr by FY20

A joint study titled ‘Bolstering ARCs’ by Assocham-Crisil, has predicted that gross bad loans of the country’s banks are expected to come down marginally to Rs 9.1 lakh crore by the end of the current financial year. “There is a significant potential opportunity for stressed-assets investors, given around Rs 9.4 lakh crore NPAs in the banking system as on March 31, 2019. Of this, the corporate segment, which has seen active interest from most investors, is estimated to account for 70 per cent,” the report said.

The findings suggested that large stressed borrowers have debt aggregating to Rs 5.4 lakh crore. The National Company Law Tribunal (NCLT) list-1 and list-2 amounted to around Rs 2.1 lakh crore and existing stock of NPAs comprised another Rs 2 lakh crore. Assets of around Rs 1.3 lakh crore are said to be under stress. About half of Rs 4.1 lakh crore worth stressed assets have been attributed to the power, infrastructure and steel sectors.