State-owned banks came under pressure
State-owned
banks came under pressure on account of quality assets concerns on
account of their advances to companies whose coal block allocations have
been cancelled. Banking sector has exposure of 8.8% of non-food credit
to the power sector. Cancellation of allotted coal blocks to projects
will adversely impact the chances of recovery of these loans. SBI, Bank
of India, Bank of Baroda, PNB and Canara Bank are some of the top losers
in this space.
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