<h1>Indian Banks Struggle with High Stressed Assets; PSBs Hit 14.5% Amid Restructured Loans and Corporate Leverage Issues.</h1> Indian banks, particularly Public Sector Banks (PSBs), are facing significant challenges due to a high volume of stressed assets, with total stressed assets reaching 11.5% and PSBs at 14.5% as of March 2016. The issue is exacerbated by restructured loans masking the true extent of non-performing assets (NPAs). Contributory factors include high corporate leverage and inadequate risk management practices. The Reserve Bank of India and the government have implemented measures such as the Insolvency and Bankruptcy Code and enhanced risk management frameworks to address these challenges and improve asset quality. Effective risk management and diversification are crucial for future stability.