Accounting for 6.9 per cent, the textile sector is the third most contributor to the stressed loans, according to the bi-annual Financial Stability Report released by the Reserve Bank of India (RBI).

“Annual slippages of major sectors/sub-sectors in December 2015 show that the textiles industry had the highest number of standard accounts slipping into the NPA category at 8.8 per cent,” the report said.

In terms of outstanding amounts, textiles saw 6.4 per cent slippage, the second highest after the iron and steel industry which have 7.8 per cent slippage.

Among other things, the report said that risks to India’s banking sector have increased since the publication of the last Financial Stability Report (FSR) in December 2015, mainly on account of a further deterioration in asset quality and low profitability.

While the credit and deposit growth of scheduled commercial banks (SCBs) slowed significantly during 2015-16, their overall capital to risk-weighted assets ratio (CRAR) level increased between September 2015 and March 2016. The riskweighted assets (RWA) density declined during this period

The gross non-performing advances (GNPAs) rose sharply to 7.6 per cent of gross advances in March 2016 from 5.1 per cent in September 2015, largely reflecting re-classification of restructured advances to NPAs following an asset quality review (AQR).

Consequently, the overall stressed advances rose only marginally to 11.5 per cent from 11.3 per cent during the period, due to a reduction in restructured standard advances ratio from 6.2 per cent in September 2015 to 3.9 per cent in March 2016, the RBI report said.

http://www.indian-apparel.com/blog/wp-content/uploads/2016/07/Textile-Sector-Accounts-For-6.9-percent-Of-Stressed-Loans.jpghttp://www.indian-apparel.com/blog/wp-content/uploads/2016/07/Textile-Sector-Accounts-For-6.9-percent-Of-Stressed-Loans-180x180.jpgApparel TalkApparel and Textile NewsTrade InformationIndian Apparel,NPA category,Reserve Bank of India,Stressed Loans,Textile SectorAccounting for 6.9 per cent, the textile sector is the third most contributor to the stressed loans, according to the bi-annual Financial Stability Report released by the Reserve Bank of India (RBI). “Annual slippages of major sectors/sub-sectors in December 2015 show that the textiles industry had the highest number of...Indian Apparel Blog that talks about Apparel & Textile News, Events and Fairs