• About Us
      Asia’s 1 st LEED Platinum Rated Campus

      Asia’s 1st LEED Platinum Rated Campus

      About Us

      • Chairman's Message
      • Vice Chairman & CEO
      • Dean's Message
      • Governing Council
      • Business Advisory Council
      • Academic Advisory Council
      • Work With Us
      • Mandatory Disclosure
      • Anti-Ragging Notice

      TERM ZERO

      Media

      • News
      • Events
      • In Media
      • Media Kit

      Rankings

      Accreditations

      NIRF

      Campus

      Blog

      Annual Events

      • Convocation
      • TEDxGLIMChennai
      • L'Attitude
      • Digital Symposium
      • Sangamitra
      • Annual Alumni Meet
      • SWIM
      • IEC
      • Human Capital Management
  • Programs
      Transform and Lead

      Transform and Lead

      Full Time Programs

      PGPM

      One Year MBA for professionals with work experience

      Learn More Apply Now

      PGDM

      Two Year MBA for professionals with 0-2 years of work experience

      Learn More Apply Now

      EXECUTIVE EDUCATION

      Partner with us for customized learning solutions for your organisation

      Learn More

      Corporate Programs

      PGXPM

      Executive program for Mid & Senior Level working professionals

      Learn More Apply Now APP. Deadline: 30th August, 2020

      PGPM Flex

      Weekend management program for young working professionals

      Learn More Apply Now APP. Deadline: 30th August, 2020

      MBA in Business Analytics

      Family Enterprises Management

  • Faculty & Research
      Ranked 6th

      Ranked 6 th

      by NIRF ranking in teaching and learning among all B-Schools in the country

      Faculty

      • Full Time Faculty
      • Visiting Faculty
      • Adjunct Faculty

      Research

      • Faculty Editors
      • Papers & Journal Publications
      • Case Studies & Books
      • Conference Proceedings

      Centers of Excellence

      • Centre For Excellence in Retail Management
      • Great Lakes Centre For Management Research
      • Kotler - Srinivasan Centre for Research in Marketing
      • Centre for Excellence in Business Analytics and Business Intelligence
      • CET
      • Union Bank Centre for Banking Excellence

      Conferences

      • NASMEI
      • Financial Conference
  • Recruiters & Companies

      “Great Location for Talent. We are happy to continue visiting and having budding professionals join us and grow their careers.”

      Anil Visal

      Partner - Deloitte India

      Campus Recruitment

      • Recruitment Process
      • PGDM Class Profile 2018-20
      • PGPM Class Profile 2019-20
      • Past Recuiters
      • Student Achievements
      • Recruiters Speak

      Internships

      • Recruitment Process
      • PGDM Class Profile 2019-21
      • Live Projects

      Placement Reports

      • PGPM
      • PGDM
      • Internship Report

      Leadership Series

      • Titans Speak
      • Industry Lecture Series
      • Thought Leader Series

      Talent Listings

  • Alumni

Bank Non-Performing Assets and Economic growth

May 8, 2014 | Posted by bobbysrinivasan << back to blog

I was recently engaged in a private conversation with a small scale real estate developer who had borrowed a sizable amount of money from one of the nationalized banks. He said to my astonishment that he has decided not to pay the loan and its installment as he is stuck with constructed apartments which he is not able to sell. If required he said that he would surrender the built apartments to the bank. I was wondering why this is taking place. I saw a press release from the Paris based think tank OECD with the following statement. I quote “The economic slowdown and higher interest rates are making it tougher for companies to repay loans, leading to a steady growth in non-performing assets especially among state run banks”.

As per the data available, stressed loans in India those that are categorized as bad and restructured total $ 100 billion or about 10% of all loans. Fitch Ratings expects the stressed assets to reach 14% of loans by March 15.

Indian economy is currently facing one of the worst slowdown since 1980’s. Investment growth has hit an 11 year low, making the economic growth rate to stay below 5 percent for years to come. The All India Banks Association released a report of 406 bad loan accounts totaling Rs 70300 crores as of March 2013. To name a few companies with bad loans

  • Sterling Biotech                    3672.6 crores
  • Winsome Diamonds            3156.62 crores
  • King Fisher Airlines             2693.24 crores
  • Orchid chemicals                  938.48 crores
  • Paramount Airways              304.02 crores

It is the responsibility of the new government to pull the country out of this stagnation. Policy Paralysis has completely destroyed the economic growth of our country. With scams billions of rupees are stolen, with NPA billions of rupees have disappeared. Trillions of rupees are used as subsidies and given to people for not working. We are on the one side dreaming of achieving economic growth but on the other side coping with situations which is dragging our economy into a hell hole. The new government cannot wait another day but should act quickly.

<< back to blog

Programs

PGPM - One Year MBA for professionals with 2+ years work experience

Learn More >

PGDM - Two Year MBA for graduates with 0-2 years work experience

Learn More >

Events

Union Bank Finance Conference
Dec 17, 2020

Networking with Champions
Nov 08, 2020

Harry Kraemer on Performance with A Purpose
Oct 08, 2020
Read more

Successful Women in Management (SWIM) Lecture Series
July 05, 2020
Read more

The Great Circle Alumni Talk Series
July 04, 2020
Read more

  • About Us
  • Programs
  • Faculty & Research
  • Recruiters & Companies
  • Alumni
  • Blog
  • Contact Us