Signs of rising asset quality stress spook Indian bank stocks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 20 2025
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Source: Reuters
Rising Bad Loans Impacting Indian Banks: Indian private lenders are experiencing increased stock volatility due to a rise in bad loans, particularly in personal loans and microfinance, with RBL Bank and Axis Bank reporting significant slippages while Kotak Mahindra Bank saw a slight improvement.
Economic Recovery Concerns: Analysts warn that the stress in loan portfolios reflects a challenging macroeconomic environment, leading banks to adopt conservative lending practices, which could prolong economic recovery as gross non-performing asset ratios are expected to rise.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
