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 Pune.
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 Pune.
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
RBI: Ensure nominations in all bank accounts and lockers
THE RESERVE BANK (RBI) on Friday asked banks to ensure nominations in new and all existing customers' deposit accounts and safety lockers, highlighting that a large number of accounts do not have nominations.
Rajnath Calls for Stronger Offense and Defence
INDIA'S OFFENSIVE AND defensive responses need to be further strengthened in view of turmoil in the rules-based global order, defence minister Rajnath Singh has said.
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 90 million pounds al-Qadir Trust case.
US Supreme Court Upholds Law That Would Ban TikTok
THE US SUPREME Court upheld on Friday a law banning TikTok in the United States on national security grounds if its Chinese parent company ByteDance does not sell the short-video app by Sunday, as the justices in a 9-0 decision declined to rescue a platform used by about half of all Americans.
Carmakers look beyond electric
SCHEDULED FOR LAUNCH in FY26, the eVitara promises a range exceeding 500 km with two battery pack options - 49 kWh and 61 kWh.
Sisodia flags shoes, saris by BJP's Verma, says EC turning blind eye
SENIOR AAP LEADER and former 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.
‘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.
Hyundai Rolls Out Mass-Market EV
HYUNDAI MOTOR INDIA, the country's second-largest carmaker, launched the Creta Electric on Friday at the Bharat Mobility Show at introductory prices of ₹17.99 lakh, ex-showroom, for the 42 kWh battery variant.
Review portfolio at every major life event
Your investment style should evolve as your circumstances change
Crude import bill rises 4% in April-December
INDIA'S CRUDE IMPORT bill increased 3.7% during the first nine months of the current fiscal 2024-25 to $102.5 billion against $98.8 billion in the same period in FY24, data from the Petroleum Planning and Analysis Cell showed.
