PSBs may face Rs 40,000-cr loss due to bad loans

Write-offs by commercial banks reach Rs 65,800 crore in first half of FY18

Commercial banks wrote off about Rs 35,000 crore of bad loans in July-September, taking write-offs to Rs 65,800 crore in the first half of the financial year.
 
Credit costs — the amount set aside for bad loans and stressed assets — for ageing non-performing assets (NPAs) and National Company Law Tribunal cases would take provision coverage ratio to 58-60 per cent by the end of FY18, from 44.3 per cent at the end of March 2017, according to rating agency ICRA.
 
Banks’ credit provisions surged to Rs 64,500 crore during Q2 FY18, up 40 per cent on a