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The devil in retail: Consumer financing may attract closer scrutiny by RBI

The consumer financing business is showing signs of heightened stress

Topics
Retail | Bad loans | RBI

Raghu Mohan 

loan
At end-September 2020, over Rs 9 trillion was stuck in accounts classified in various degrees of delinquent and bad loans

The Reserve Bank of India’s (RBI’s) Financial Stability Report (FSR: December 2021) says the credit growth model is confronting headwinds: delinquencies have risen, and the new-to-credit segment is showing a dip in originations. It refers to the Bank for International Settlements’ (BIS) observation that in emerging markets, “typically peak six to eight quarters after the onset of a severe recession.”

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First Published: Mon, January 17 2022. 06:02 IST
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