Rising delinquencies have indicated a worse performance of the banking sector in the published third quarter results showing an increased gross non-performing assets (NPAs) of the banks at 30% over the corresponding period last year.
Riding high on the backdrop of an over Rs 2.60 lakh crore increase in the loans given by the top eight banks, including five public sector banks and three private sector banks, during the past one year, the delinquencies stood at Rs 7,218 crore during the last one year, as economic slowdown normally stinks of rise in delinquency rate.
With a sprint in the credit-deposit growth during the past few years and the subsequent tightening of interest rates during the past two years, the banks have witnessed inching up defaults.