How India’s Actual Bad Debt Compares With Official Bank Numbers
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(Bloomberg) -- 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.
(Bloomberg) -- 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:
| Bank | Reported bad debt (Sept. 30) | Reported bad debt (Dec. 31) | Actual bad debt (Dec. 31) |
|---|---|---|---|
| Axis | 4.18% | 3.44% | 4.55% |
| Bank of Baroda | 9.14% | 8.48% | 9.63% |
| Canara | 8.23% | 7.46% | 8.95% |
| HDFC | 1.08% | 0.81% | 1.38% |
| ICICI | 5.17% | 4.38% | 5.42% |
| IDBI | 25.08% | 23.52% | 24.33% |
| IndusInd | 2.21% | 1.74% | 2.93% |
| Kotak Mahindra | 2.55% | 2.26% | 3.27% |
| Punjab National Bank | 13.4% | 13.0% | 14.7% |
| RBL | 3.34% | 1.84% | 4.57% |
| State Bank of India | 5.28% | 4.77% | 5.44% |
| Shadow Bank | Reported bad debt (Sept. 30) | Reported bad debt (Dec. 31) | Actual bad debt (Dec. 31) |
|---|---|---|---|
| Bajaj Finance | 1.03% | 0.55% | 2.86% |
| HDFC Ltd. | 1.83% | 1.67% | 1.9% |
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