Banks ease bad debt problem by write-offs, underlying problem not resolved

Topics bad debts


India's banks wrote off more than $30 billion worth of bad debt in the year to June 30, helping to lower stressed loans on their books by 8.5%, according to Reserve Bank of India (RBI) data reviewed by Reuters. The write-offs illustrate the urgent problem of bad loans as borrowers struggle to service, let alone pay-off, their debt in a stuttering economy.

As of June 30, total stressed assets on the books of Indian banks were at Rs  976847 crore ($137.50 billion), down from Rs 1067229 crore ($150.22 billion) a year ago,.

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