Synopsis
The ratings agency forecasts total stressed loans from retail to rise to 4.7% in March 2022 from 1.60% in March 2021 led by slippages in unsecured loans especially from private sector banks.
Agencies
Gross NPAs for the banking system will increase to 10.1% in March 2022 from 8.8% at the end of the current fiscal but higher pre operating profits and provision coverage ratios will help banks manage the higher stress, Ind-Ra said.
Mumbai: Stress in retail loans could triple by the end of FY22 due to a slowdown in income growth and slower pace of job creation in the service sector, credit ratings firm India Ratings & Research (Ind-Ra) said. It estimated that stressed loans from retail advances could rise to 4.7% of the total in March 2022 from 1.60% in March 2021, led by slippages in unsecured loans especially at private sector banks.
The rating company said the sector turnaround is being driven by a mix of “moderation in competition intensity between the big telcos, resulting in waning tariff differentials, increasing data penetration, supporting growth in average revenue per user (ARPU), and a growing subscriber base”.
Govt may go for higher external financing
January 28, 2021
Macro-economic management has to be integrated in its monetary, fiscal and prices and incomes policies and not work in silos - Getty Images/iStockphoto
Macro-economic management has to be integrated in its monetary, fiscal and prices and incomes policies and not work in silos - Getty Images/iStockphoto×
Gross market borrowing likely to be less than FY21’s ₹12-lakh crore
The Budget is expected to turn to external financing of the fiscal deficit during FY22. The gross marketing borrowing, however, is likely to be less than the enhanced amount for the current fiscal.