slippage
Between March and September, SMA-2 loan accounts, cases where principal and interest payments are overdue for more than 60 days, surged by 56%. There is a concurrent drop of 40% in SMA-1 accounts, where payment overdue is more than 30 days.
What this means is that stressed companies still aren’t able to generate enough revenue to honour loan payments.
What is also clear from the adjoining chart is that the improvement in asset quality during October-March last fiscal year was fleeting and merely statistical. Large borrowers are still unable to meet loan repayment commitments and banks are still deeply mired in the bad loan mess.
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