MUMBAI: Bad loans are expected to rise to 11-11.5% of banks' total advances by March 2021 from 9.6% estimated in March this year, said rating agency Crisil.
This will be the result of sharply lower recoveries and rising slippages, it said. That apart, non-performing assets (NPAs) are expected to swell for non-banking finance companies (NBFCs), as well, with microfinance, micro, small and medium enterprise (MSME) loans and developer funding witnessing the sharpest spike. “Asset quality deterioration will, however, remain moderate in housing loans and gold finance with less than 50 basis points (bps) increase in NPAs.
Read more on livemint.com