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MSME loans risky even as banks transmitted rate cuts the most
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Synopsis Despite the restructuring, however, stress in the MSME portfolio of PSBs remains high noted RBI s latest financial stability report (FSR). Given the elevated level of debt of the stressed cohort, the implications of business disruptions following the resurgence of the pandemic could be significant.
Agencies
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Even as banks have transmitted rate cuts most to the MSME sector and education loans during pandemic, they are still perceived to be risky. The spread over one year benchmark lending rate is highest for such loans, according to a study by RBI economists