News > Banks’ bad loans could rise to 9.5% of their total lending by September 2022, says RBI

Banks’ bad loans could rise to 9.5% of their total lending by September 2022, says RBI

Indian banks’ bad loans could rise up to 9.5% of their total lending by September next year, the RBI predicted on Wednesday.

In its biennial financial stability report, the central bank noted that this would be the case in a “severe stress scenario”, if India’s GDP contracts by 2.1% in the second half of this financial year and rises by 1.1% in the first half of fiscal year 2022-’23.