Indian Banks Predicted to See Bad Loan Ratio Rise by March 2026, Central Bank Report Indicates - PRESS AI WORLD
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Indian Banks Predicted to See Bad Loan Ratio Rise by March 2026, Central Bank Report Indicates

Credited from: REUTERS

  • The gross bad loan ratio for Indian banks may rise to 3% by March 2026, up from a 12-year low of 2.6% in September 2024.
  • This projection is based on the central bank's baseline scenario in its latest Financial Stability Report.
  • Under high-risk scenarios, the ratio could reach as high as 5% and 5.3%.
  • Despite potential increases in the bad loan ratio, all banks are expected to meet the minimum capital requirement of 9%.
  • The report notes overall improvements in banks' asset quality, supported by recoveries and write-offs of earlier bad loans.

For further details, visit the original article at Reuters.


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