Continued strong growth in unsecured lending is putting India’s banks at risk of rising defaults, a concern that is exacerbated by their relatively low loan loss absorption capacity. This raises the possibility of the sector entering a slow-burning crisis that would eat into profits and impair lending, which would in turn negatively affect household consumption and investment.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.