The Reserve Bank of India (RBI) has raised concerns over worsening asset quality in unsecured loans, even as the growth in personal loans has moderated following regulatory measures introduced by the central bank to curb their rapid expansion.
In the Financial Stability Report (FSR), the RBI flagged the sharp rise in write-offs among private banks, as a potential indicator of worsening asset quality in this segment and a weakening of underwriting standards.
"Delinquency levels in consumer credit remained stable for banks and NBFCs. However, rising impairment was seen in the unsecured retail loan portfolios," it noted. "Moreover, upgradation is declining and slippage from SMA-2 to NPAs are on the rise," it said.
A loan or account is classified as Special Mention Account (SMA)-1 when the principal or interest payment is overdue between 31 and 60 days, while it is classified as SMA-2 when the principal or interest payment is overdue between 61 and 90 days.
Esta historia es de la edición December 31, 2024 de Financial Express Hyderabad.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición December 31, 2024 de Financial Express Hyderabad.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
'America First' stalls bond issuance bonanza in EMs
A RECORD START to the year for emerging-market bond sales is at risk of fizzling as high Treasury rates hamper weaker credits from tapping international capital.
Avenue needs a q-commerce boost
THE RETAILER IS LOSING OUT ON CONSUMER SPENDS
PLFS reflects positive employment trends
As India strides towards the vision of Viksit Bharat, empowering youth with the right skills and work experience continues to be a priority
These Men in Blue Break Boundaries for the Disabled
ON JANUARY 7 this year, a 17-member Indian cricket team was given a warm send-off for a four-nation Champion Trophy tournament in Sri Lanka.
Govt capex flow augurs well for FY26
Truck and bus maker Ashok Leyland (ALL) has unveiled three new commercial vehicles, including an electric light truck, at the Auto Expo.
Comfortable design for 24/7 wear
It tracks fitness, sleep, stress & other key health vitals
India and NZ Should Address Market Access for Goods: GTRI
INDIA AND NEW ZEALAND should address market access issues for goods, promote collaborations in key sectors, and work on improving connectivity with an aim to boost bilateral trade, which is just $1.5 billion, think tank GTRI said on Sunday.
'MBA isn't at risk; it's in transition'
Rekha Sethi, the director general of the All India Management Association (AIMA) - the apex body for management profession in India - is of the opinion that despite poor placements at business schools last year, the MBA degree isn't at risk. \"It's in transition,\" she says.
Tech firms face setback as Wi-Fi spectrum allocation plan nixed
IN A MOVE that could significantly impact tech giants such as Meta, Google and others, the department of telecommunications (DoT) has decided not to pursue the delicensing of new spectrum for Wi-Fi use, officials said.
Bank of Japan Set to Raise Interest Rates
BANK OF JAPAN governor Kazuo Ueda will size up the need to raise interest rates on Friday amid heightened expectations of a hike — and barring a market shock triggered by Donald Trump’s first few days in the White House.
