How India’s Actual Bad Debt Compares With Official Bank Numbers
Employees work in the home loan clearing department at a HDFC branch in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

How India’s Actual Bad Debt Compares With Official Bank Numbers

Most Indian banks are reporting lower bad-loan ratios, aided by a Supreme Court ruling that bars lenders from classifying any non-performing assets from the start of September.

However, the banks have also been outlining how much the ratio would be if they’d mark the borrowing as bad. In almost every case, the ratio is much higher.

Here’s a look at the full extent of India’s bad loan problem in selected financiers:

BankReported bad debt (Sept. 30)Reported bad debt (Dec. 31)Actual bad debt (Dec. 31)
Axis4.18%3.44%4.55%
Bank of Baroda9.14%8.48%9.63%
Canara8.23%7.46%8.95%
HDFC1.08%0.81%1.38%
ICICI5.17%4.38%5.42%
IDBI25.08%23.52%24.33%
IndusInd2.21%1.74%2.93%
Kotak Mahindra2.55%2.26%3.27%
Punjab National Bank13.4%13.0%14.7%
RBL3.34%1.84%4.57%
State Bank of India5.28%4.77%5.44%
Shadow BankReported bad debt (Sept. 30)Reported bad debt (Dec. 31)Actual bad debt (Dec. 31)
Bajaj Finance1.03%0.55%2.86%
HDFC Ltd.1.83%1.67%1.9%

©2021 Bloomberg L.P.

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