Bad Loans To Rise At Banks As Easy Liquidity May Tighten: Fitch Fitch sees high risk of a protracted deterioration in asset quality with more pressure on loans to retail and stressed small and medium-sized firms.
Updated: March 08, 2021 3:01 pm IST
Bad loans and credit costs are expected to rise at Indian banks as easy money policies to shore up a pandemic-battered economy may start to tighten, Fitch Ratings said on Monday.
The coronavirus lockdowns last year slammed an already struggling financial sector, but recent quarterly reports have shown an improvement in profits and asset quality.
Noting that the recent improvement masked underlying pandemic stress, Fitch said banks would increasingly feel the pinch from the continued impact on small businesses and rising unemployment.