Banks in October - Loan portfolio contracted amid NPLs growth

Loan portfolio growth at non-restructured banks stalled in October for the first time since January amid steady growth of NPLs, overdue loans and provisions. Banks still keep 20% of assets in cash equivalents and another 10% in investment portfolio; deposit growth continued in almost all banks; interest rates on assets and liabilities have been declining in most of the banks. Although, all banks comply with prudential requirements, capital adequacy ratios of some aggressively lending banks have been sliding down and approaching the minimum requirements.