Spike in India bank's stressed loans slower due to govt measures: Moody's

Global rating agency Moody’s said The Indian government's support measures for bank borrowers have softened growth in non-performing loans (NPLs), averting the risk of a sharp deterioration in asset quality.

“Ample domestic liquidity, loose monetary policy, moratoriums on loan repayments and government guaranteed loans to small businesses have supported Indian banks’ asset quality. As a result, restructured loans have not increased as much as we expected at the onset of the pandemic,” said Alka Anbarasu, a Moody’s Vice President an d Senior Credit Officer. 

The Financial Stability Report in January 2021 had estimated that gross non-performing assets of banks in India may