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Testing on 1 million users of the three banks showed that 100Credit's model can reduce the Nonperforming Loan (NPL) ratio by about 30%to50%50 % as compared with consumers solicited from offline channels.
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As of the end of the quarter, nonperforming loans and leases fell to 0.76percentt, from 0.84percentt in 2002.
The exact amount of those investments has not been set and will depend on a continuing assessment of the extent of the banks' nonperforming loans.
According to the table, nonperforming loans at CVB totaled $69.8 million at the end of 2009.
The scale of the problem is immense: some estimates put the total of nonperforming loans at one-sixth of the economy's entire annual output; the comparable figure for the United States at the peak of the savings and loan debacle was only 3percentt.
To allay those fears, Mr. Koizumi ordered regulators to step up bank inspections to clarify the amount of nonperforming loans on the banks' books.
Further, the creation of unneeded capacity raises the risk of nonperforming loans for banks that finance the investment.
The starker accounting helped push the total of nonperforming loans 22percentt higher, to a record $437 billion, at the end of March.
But Fitch said on Wednesday that lending had continued to be aggressive — powering the economy, but raising the risk of nonperforming loans.
Even as the economy deteriorated, nonperforming assets actually fell 1percentt from the third quarter.
In the quarter that ended March 31, the bank doubled the amount of provisions for nonperforming assets from the previous quarter, according to Enam Securities in Mumbai.
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