According to a report released by rating agency Crisil, a nearly three-fold increase in gross non-performing assets (NPAs) of the banks is projected by the year 2011 - the figures are likely to go up from the last year's 2.3 percent of advances to 5 per cent of advances by 2011.
Speaking in absolute terms, the gross NPAs would from last year level of Rs 55,000 crore to Rs 1.9 lakh crore.
The report says increased gross NPAs would result from increasing defaults in payments by companies and small and medium enterprises (SMEs), because of their puny risk profile and severe strain on operating margins.