homevideos Newseconomy NewsRBI's financial stability report: Bad loans may rise to 9.5%, experts weigh in

RBI's financial stability report: Bad loans may rise to 9.5%, experts weigh in

Reserve Bank of India’s (RBI) financial stability report suggests stress for banks would rise in 2022, especially in the retail and MSME segment, but banks most are well capitalised to deal with it. Krishnan Sitaraman, Senior Director and Deputy Chief Ratings Officer at CRISIL Ratings and Krishnan ASV Lead Analyst (BFSI) at HDFC Securities share their perspectives.

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By Surabhi Upadhyay   | Sonia Shenoy   | Anuj Singhal  Dec 30, 2021 1:41:09 PM IST (Published)

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Reserve Bank of India’s (RBI) financial stability report suggests stress for banks would rise in 2022, especially in the retail and MSME segment, but banks most are well capitalised to deal with it. The other likelihood is the beginning of rate hikes. The report showed while bad loans may rise, they won't hit double digits by September 2022. In the worst-case scenario, gross NPAs may rise to 9.5 percent by then.

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What do these and other macro factors spell for the banking sector in 2022 from an investor's perspective? Krishnan Sitaraman, Senior Director and Deputy Chief Ratings Officer at CRISIL Ratings and Krishnan ASV Lead Analyst (BFSI) at HDFC Securities share their perspectives.
For the entire discussion, watch the accompanying video.

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