Q1 results show rising slippages in private banks. Axis Bank saw a 70% jump; Yes Bank’s gross slippage rose to 2.4% of advances
Stress is emerging from unsecured loans and farm credit—two areas that may require closer scrutiny before problems escalate
Unsecured lending rose to 25.5% of credit by March 2023. RBI has tightened norms, but the lending trend points to deeper shifts
Despite some bank-level stress, system-wide GNPAs fell to 2.3% in March 2025—down from 9.6% in 2017, showing overall resilience
With corporates deleveraging and turning to capital markets, banks may be left serving riskier borrowers, raising monitoring costs
Household debt is rising and capital market shifts could pressure bank margins. The RBI must stay alert to liquidity-driven risks