Mumbai: There has been a steady deterioration in asset quality of banks in the last two years on account of heavy stress in credit card and personal loan product segments, reports PTI quoting a top banking industry official.
"In the last two years, there has been a sharp deterioration in the asset quality (of lenders) because of stress in products like credit cards and personal loans, which is a challenge as we go forward," State Bank of India (SBI) chairman O P Bhatt said at a banking conference here.
Mr Bhatt said the losses accruing out of "alleged mis-selling of derivatives" or the selling of inappropriate products also needs to be checked.
There has been a huge fluctuation in the liquidity situation in recent times, which he described as "like a yo-yo" and which is a challenge to the banking world.
Mr Bhatt, who is also the chairman of the India Banks Association (IBA), said he sees a huge potential for growth across sectors fuelled by aspirational youth in coming times but added Indian banks will have to focus on various factors including hiring the right staff and developing leaders.
A trillion US dollars will be required to develop the infrastructure in urban India alone, Mr Bhatt said, adding Planning Commission deputy chairman Montek Singh Ahluwalia and himself had a meeting to discuss the possibilities of creating an infrastructure fund.
Home loan is the highest growing segment within lending products and Mr Bhatt said he expects the home loans portfolio to end at over $1 trillion in a decade's time.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
