'Banks to remain stressed next year too'

Maintaining negative outlook on the country’s banking sector, Fitch Ratings on Thursday said gross bad assets of domestic banks could reach 4.2 per cent of advances this financial year and the asset quality could remain stressed over the next year.

He said, ”There is a risk our initial gross NPA ratio forecast of 3.75 per cent could rise to 4.2 per cent this financial year due to a more protracted downturn, impact of which should be felt over next three-four quarters.”