Icra reports surge in banks' NPA slippage

Bank loans worth Rs 22,000 crore which were recast under Strategic Debt Restructuring (SDR) in 2015-16 had slipped into the non-performing asset (NPA) category during the final quarter ended March of 2016-17, according to rating agency ICRA.

On a failure in SDR loans, banks have to start making provisions for these on the balance sheet, at a time when revenue growth has been tepid or stagnant and credit costs are going up.

SDR rules give lenders an 18-month window for bringing strategic investors for a troubled loan. In this period, the loans are treated as standard assets. It