A recent study by McKinsey has said stressed assets on the books of Indian banks are higher than the net worth of the entire sector. The situation is most acute for public sector banks where stressed assets are now about 50% higher than the total net worth of these banks. The consultancy said stagnant credit growth in a low interest rate environment, a high level of stressed assets and dramatic changes in the technological and regulatory environment are creating a perfect storm-like condition for the Indian banking sector. The report said total stressed assets on the books of public sector banks stand at Rs 8.53 lakh crore. In comparison, their combined net worth is at Rs 5.69 lakh crore. In the case of private sector banks, total stressed assets are at around Rs 1.08 lakh crore, as compared to the Rs 3.55 lakh crore net worth of these banks. The report added that the level of provisions set aside by public sector banks is nowhere near enough to cover the declared stressed assets and falls short by almost Rs 6 lakh crore.