Ratings agency Icra reported that fresh non-performing assets in the banking sector are likely to increase during the current fiscal year.
Private sector banks face higher pressure due to unsecured retail and MSME loans, with fresh NPA rates estimated at 2.5% compared to 0.8% for public banks.
Despite rising slippages, the banking sector is expected to maintain healthy profitability and credit growth between 15.1% and 15.9% in FY27.