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.
This story is from the December 31, 2024 edition of Financial Express Kolkata.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the December 31, 2024 edition of Financial Express Kolkata.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Hamas to release first hostages on Sunday
THE PALESTINIAN MILITANT group Hamas is expected to release the first hostages under a Gaza ceasefire deal on Sunday, Israeli Prime Minister Benjamin Netanyahu's office said on Friday, after 15 months of war that demolished the enclave.
Sisodia flags shoes, saris by BJP's Verma, says EC turning blind eye
SENIOR AAP LEADER and Delhi deputy chief minister Manish Sisodia has alleged that the Election Commission is turning a blind eye to poll code violations ahead of the Assembly elections in Delhi early next month.
Bullet Train Ambitions
Plans for indigenous high-speed trains are laudable, but innovative financing models will be needed
Axis Bank Stock Sinks 6% on Weak Q3 Show
Stocks hit 52-week low; brokerages slash price targets
EV industry needs better cost structure
After being in a near-monopolistic position in the EV space for a few years, Tata Motors is set to face heavy competition in 2025 with rivals like Maruti Suzuki, Hyundai, M&M and JSW MG Motor gearing up with launches.
ICICI Lombard Q3 net profit surges 68% to ₹724 crore
ICICI LOMBARD GENERAL Insurance on Friday posted a 68% year-on-year increase in its third-quarter net profit at ₹724 crore.
HSBC gets RBI nod to open 20 new branches
HSBC INDIA ON Friday said it has received approval from the Reserve Bank of India to open 20 new branches in key cities including Navi Mumbai, Lucknow, Mysuru, Nagpur and Nashik.
Jio Financial Q3 net profit remains flat at ₹295 crore
JIO FINANCIAL SERVICES on Friday reported a consolidated net profit of ₹295 crore for the quarter ended December 31, 2024, which was flat versus ₹294 crore posted in the year-ago period.
Centre gives ₹11,440-crore lifeline to RINL
COMMUNICATIONS MINISTER JYOTIRADITYA Scindia on Friday said the Cabinet has approved the refarming of 687 MHz of spectrum from various government ministries for the deployment of 5G and future 6G services.
Imran Khan gets 14-year jail term in graft case
A PAKISTANI COURT on Friday sentenced jailed former prime minister Imran Khan and his wife Bushra Bibi to 14 and seven years in prison respectively after finding them guilty of corruption in the 190 million pounds al-Qadir Trust case.
