High interest rates responsible for rising bad loans: Moody's

Rising interest rates and project delays are leading to an increase in bad loans among banks in India, Moody's said in a report. 

"A deterioration in credit conditions is already being felt in India, where slower economic growth and rising interest rates have made it tougher for borrowers to repay debt," Moody's Analytics said in the report. 

Non-performing assets ( NPA) increased from a low of 2.3 per cent in 2011 to about 4 per cent in 2013. 

Public sector banks, which account for about 75 per cent of total lending, are behind the increase in non-performing loans, it said. 

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