Bad loans set to rise in H2 of FY21 despite improving outlook: Axis Bank

The lender's asset quality had improved both sequentially and year-on-year in Q2

Despite improving economic conditions, private sector lender Axis Bank sees bad loans rising and said it will continue to be conservative.
 

“Collection efficiency has been in the range of 95-97 per cent. We saw payments bouncing in September (when the EMI moratorium came to an end) but since then, we have seen improvement month-on-month,” said Sumit Bali, president, retail lending and payments, Axis Bank.
 

“While the stress is lower than projections, it would be higher than what we saw last year because of the pandemic. But it is getting better for us. However, Q3 and Q4 will see some slippages