Deprecated: Methods with the same name as their class will not be constructors in a future version of PHP; WPAlchemy_MetaBox has a deprecated constructor in /home/banknpa101/public_html/wp-content/themes/california-wp/inc/metaboxes/wpalchemy/MetaBox.php on line 56

Notice: Undefined variable: kses in /home/banknpa101/public_html/wp-content/themes/california-wp/inc/nc-options/nc-options.php on line 1841

Notice: Undefined variable: kses in /home/banknpa101/public_html/wp-content/themes/california-wp/inc/nc-options/nc-options.php on line 1845
Bank NPA Consultants Insolvency and Bankruptcy Blog

Banks keep lending huge amounts while inevitably hiding the Distress signals

Bank NPA Consultants

India’s bankruptcy courts have sought to resolve the Rs 8 lakh crore worth of non-performing assets (NPA) problem that is choking the banking system. But it is evident that banks have played a crucial role in the crisis by lending ailing companies with fresh loans, even as they struggled to repay their previous loans.

This practice of ever-greening is called extend and pretend in India.

The banks have pushed the system to the brink of collapse by taking advantage of the RBI regulations.

Banking regulation has proven to be a conflict between bankers and regulators. The bankers give priority to good news while the latter give priority to bad news.

As a result, the banks have financed unviable projects and once the loans failed they were hesitant to acknowledge them as NPA.


The article has been sourced from


Leave a Reply

Your email address will not be published. Required fields are marked *