Retail and MSME loans will default
MUMBAI: Despite regulatory and supportive measures during the Corona era, lenders' asset quality has not improved significantly and non-performing assets (NPAs) are likely to rise in the coming days. Bankers say defaults in retail and micro, small and medium enterprises (MSMEs) are on the rise as the moratorium period draws to a close and delays in payments have resulted. Assumptions have been made by Crisil. The true picture of NPAs has yet to emerge due to restructuring under regulatory norms in 2020 and 2021. After the first wave of corona, the Reserve Bank provided mortgages on loan repayments. As there is no relief at present, new NPAs have increased in the first quarter of the current financial year, especially in retail and MSME loans. This problem has arisen not only in the public sector but also in private banks. Gross NPAs in retail and MSME loans of public sector banks, which stood at around 9 per cent in June 2020, rose to 6.5 per cent at the end of June this year, ...