Coronavirus pandemic to leave up to 3.7% of loans as NPAs: Report

Earlier, ICRA had forecast credit growth for banks at 6-7 per cent

Rating agency ICRA on Wednesday revised down its credit growth outlook for banks to 2-3 per cent for the current fiscal, and said the coronavirus pandemic-driven stress may leave 3.1-3.7 per cent of assets into bad loan list by March.

Earlier, it had forecast credit growth for banks at 6-7 per cent.

The agency also expects GDP to contract by 11 per cent this fiscal from its earlier forecast of 9.5 per cent, as there is no let-up in the pandemic nor any glimmer on a vaccine to prevent it. These are the mains reason for halving of credit demand to 2-3