ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Finance

India central bank warns of bad debt surge as pandemic relief ends

Nonperforming loans projected at 13.5%, with auto and steel industries hit hard

A worsening bad debt problem at Indian banks could choke off lending to businesses and individuals.   © Reuters

NEW DELHI -- Indian banks will see a spike in bad debt later this year as a key coronavirus relief measure expires, the central bank says, flagging a source of potential financial instability that could hamper lending to businesses and individuals.

Nonperforming debt will account for 13.5% of all outstanding bank loans in September, the Reserve Bank of India forecasts, up 6 percentage points from a year earlier.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more