Realty, construction, power may spell more trouble to banks: India Ratings

However, lenders will be better equipped to provide for these loans as they are mainly medium-sized, up to Rs 2,000 crore per account

Real estate, construction and power are likely to be a major headache for banks, as a staggering Rs 1.5 trillion of stressed assets may turn sour in the next 18 months. They form part of the total Rs 3.5 trillion stressed but not recognised assets, according to India Ratings & Research.

However, the banks will be in better position to make provision for these loans as they are mainly medium sized, up to Rs 2,000 crore per account. The requirement of the accelerated provisioning norms wouldn’t apply to these assets.

The rating agency said it expects a 20 per cent