During the quarter ended December 2013, banks collectively held loan provisions of about Rupees one lakh crores, an increase of 13 percent over the year, indicating that loan asset quality of banks in India deteriorated considerably The trend of y-o-y growth in gross non-performing advances (GNPA) outstripping the y-o-y growth of advances, that started from the quarter ended September 2011, continues although the gap in the growth rates is narrowed 5.
That would not only avoid overtaxing future generations; it would also make a major contribution to achieving faster growth and more employment. After all, public confidence in the future can be strengthened only by a fiscal policy that is predictable and based on government finances which are sustainable in the long term.