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http://www.caclubindia.com/articles/print_this_page.asp?article_id=27288
This article throws light on the each of the above factors and how they have contributed to bad loan of close
to Rs. 4 lakh crores in absolute terms.
Domestic & Global Slowdown- The overall economic scenario is discouraging the domestic as well has the
global economic activity has slowed down over the past couple of years which has adversely effected the
corporate sector in Indian, and in-turn has adversely effected their loan servicing capacities. Global
uncertainty result in lower demand for products including exports, which directly effect the manufacturing &
trading sectors with reduced revenues ,diminishing profits and bloated account receivables. The basic metal
and metal products, construction and textiles being the major contributors to the stressed assets in March
2016. RBI Governor Raghuram Rajan has also put the blame of the ballooning bad loans on Overall
11-Jul-16 7:43 PM
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11-Jul-16 7:43 PM