As NPA resolution crawls, banks stare at spike in credit cost
Updated : September 25, 2019 07:05 AM IST
Banks are staring at a spike in their credit cost, which is set to rise in the range of 1.9-4.6 percent for the second half of the current fiscal, a report said.
With the RBI giving forbearance to MSMEs until March 2020, some of the incremental stress in this segment can show up in FY21, unless the economy picks up, said the report.
The return on assets of state-run banks and their private-sector peers is expected to increase by up to 10 bps and 30 bps, respectively, as a result of the cut in corporate taxes.
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