Overview
- A June 3 Moody’s report forecasts that Indian banks will keep their non-performing loan ratio between 2 percent and 3 percent over the next year.
- Government capital expenditure, tax relief and monetary easing are expected to underpin credit quality across the banking sector.
- The Reserve Bank of India’s higher risk weights on unsecured retail loans and non-bank finance company exposures have slowed growth in higher-risk segments.
- Moody’s flags rising impairments in unsecured retail and microfinance loans, with two-wheeler financing particularly vulnerable to delinquencies.
- The Nifty Bank index hit a record on June 3 as investors weighed supportive policy measures ahead of the RBI’s Monetary Policy Committee decision.