Over the last five years, the gross non-performing assets (NPAs) of banks have dropped by almost 46 per cent from Rs 10.21 lakh crore in fiscal year (FY) 2017-2018 to Rs 5.55 lakh crore by March 2023.
SBI Chairman Dinesh Kumar Khara expects a moderation in the bank s unsecured lending portfolio following the tightening of norms by the Reserve Bank of India. Interest rates on such loans will also go up as the cost of funds increases
The Reserve Bank of India (RBI) asked banks on Thursday to set aside more capital, following repeated warnings about rapid growth in some personal loans. Governor Shaktikanta Das had in the recent monetary policy review said banks should strengthen internal processes to curb risks.
Since May 2022, the central bank has increased the rate by 250 bps over inflation concerns. This has resulted in a hike in lending rates by most banks as they use the repo rate as an external benchmark to link their floating-rate home loans.