SBI’s bad loans indicate sharp deterioration in health of Indian firms
The continuing contraction in manufacturing indicates that the situation will likely get worse, leading to more bad loans
State Bank of India’s (SBI’s) June quarter numbers are a reflection of the macroeconomic gloom surrounding Indian firms. The bank’s gross non-performing assets (NPAs) have shot up by ₹ 9,702 crore, or 19%, since the end of March. As a proportion of advances, gross bad debt stood at 5.56%, the highest in at least eight years.