Get ready for big gush of bad loan reporting from banks. Supreme Court has lifted the stay on declaration of NPAs by banks.
In September Apex court put a stop on the NPA reporting of Indian banks. The SC ruled that banks cannot classify loan accounts as NPAs that were standard (not in default) as on August 31.
Rating agency ICRA estimates bad loans worth Rs 1.3 lakh crore were not recognised as of December 31, 2020 due to Supreme Court interim order.