Is the quantum of non-performing assets (NPAs) with the Indian banks the highest in the world? If so give reasons?
Other consequences would be reduction in interest income, high level of provisioning, stress on profitability andcapital adequacy, gradual decline in ability to meet steady increase in cost,increased pressure on net interest margin (NIM) thereby reducing competitiveness,steady erosion of capital resources and increased difficulty in augmenting capital resources.
The lesser-appreciated implications are reputational risks arising out of greater disclosures on quantum and movement of NPAs, provisions etc. The non-quantifiable implications can ...more