Bank loan: Retail loan stress may reverse NPA gains, CareEdge warns of unsecured segment risks in H1FY26
CareEdge Ratings anticipates a slight increase in Indian banks' NPAs by FY26's first half, driven by rising stress in retail loans, particularly unsecured personal and microfinance. Despite overall asset quality improvements in recent years, private banks face higher slippages due to unsecured lending. Increased retail lending amid subdued corporate credit demand poses potential risks to asset quality.
CareEdge Ratings anticipates a slight increase in Indian banks' NPAs by FY26's first half, driven by rising stress in retail loans, particularly unsecured personal and microfinance. Despite overall asset quality improvements in recent years, private banks face higher slippages due to unsecured lending. Increased retail lending amid subdued corporate credit demand poses potential risks to asset quality.
