Banks tighten scrutiny on loan recasts

Alarmed at the rising pile of potentially bad assets, banks want to scrutinize all proposals to recast loans more rigorously by making forensic audits mandatory. Gross bad loans at India’s banks topped Rs.2 trillion in the three months ended 30 September. If a portion of the Rs.2.65 trillion in restructured loans turns bad, the stress in the industry will only increase.

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