 "banks, loans, credit, private banks, public sector banks, PSU banks, loan write-off, npa, bad loans, Non performing assets, asset")
Credit quality of the large and medium enterprises (LMEs) segment weakened to a seven-year low in the current finacial year (April-December 2019).
The asset quality deteriorated for small enterprises (SMEs) as well but with lesser intensity, according to CARE Ratings.
The modified credit ratio (MCR) for the LME segment declined to 0.92 in the nine months of 2019-20. LMEs accounted for 70 per cent of the entities whose financials were reviewed during the period. Thus, they have a larger share in the deterioration of overall credit quality.
MCR is defined as the ratio of upgrades and reaffirmations to downgrades and
