Non-performing assets (NPAs) or bad loans in the banking sector are set to shoot up by at least ₹8,000 crore as advances to the scam-hit Gitanjali Gems Group have turned bad during the quarter ended March 31.
Banks will have to make provisioning of ₹8,000 crore for Gitanjali alone as there has been no servicing of the working capital loan during the fourth quarter of last fiscal, sources said.
Bad loans
Gitanjali, among others, is the major account which has turned bad in the fourth quarter of 2017-18.
Gross NPAs of all the banks in the country amounted to ₹8,40,958 crore in December, led by industry loans and followed by services and agriculture sectors, as per the government estimates.
