NEW DELHI May 13 India has seen an improvement
in state-run banks' bad loans in the last quarter, a senior
finance ministry official said on Tuesday, and the government is
now examining ways to help the banks raise fresh funding.
India's worst economic slowdown since the 1980s and higher
interest rates are making it tougher for companies to repay
loans, leading to a steady growth in non-performing assets,
especially among state-run banks.
Bad loans had come down "drastically" in the housing sector,
Financial Services Secretary G.S. Sandhu said.
Stressed loans in India - those categorised as bad and
restructured - total $100 billion, or about 10 percent of all
loans. Fitch Ratings expects stressed assets to reach 14 percent
of loans by March 2015.
(Reporting by Rajesh Kumar Singh; Writing by Tommy Wilkes;
editing by Malini Menon)