Bad loans of the banks are expected to cross rs 10 lakh crore study by the end of the current financial year: Study
According to a study by industry body Assocham and rating company Crisil, “NPAs may increase to 8.5-9 per cent by March 2022 due to difficulty in repayment of loans in the retail and MSME sector and restructuring of some assets.”
According to the study, the gross non-performing assets (GNPAs) of banks may cross Rs 10 lakh crore by March 2022.
It said the current pressure on asset quality is different from the pressure seen a few years back. At that time, NPAs had increased mainly due to default in repaying loans from large accounts.
According to the study, this time small accounts, especially in the MSME and retail category accounts, are expected to face problems in repayment.
However, it also said that the debt restructuring scheme announced for MSMEs and small borrowers should check the huge increase in NPAs. Also, there are investment opportunities in this type of asset for investors looking to invest in stressed assets.
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