Thursday, September 10
The share of bad loans is expected to remain at a 15- year low of around 2.3%– 2.4%, in FY26 as pressure from unsecured personal loans and microfinance institutions (MFIs) is offset by corporate deleveraging and a continued decline in the gross non-performing assets (GNPA), as per a report by Care Ratings. As of the June 2025 quarter, system-level GNPA ratio had declined to 2.3%, compared to 2.7% a year ago. GNPA of the banking system reduced by 9.5% year-on year (y-o-y) to Rs 4.18 lakh crore as of Q1FY26. Though bad loans of private sector banks rose by 7.6% y-o-y, driven by an increase in slippages and stress in the microfinance portfolio. Saloni Shukla takes a look at the asset quality situation in the banking sector. 123439713
Strong government expenditure, strengthening rural demand, and buoyant services industry supported India’s economic growth to a median of 6.7% in the first quarter of FY26, according to an ET poll of 14 economists. The growth estimates range from 6.3% to 7%, aligning with the Reserve Bank of India projection of 6.5%. India’s gross domestic product (GDP) grew by 6.5% in the first quarter of last fiscal year. The National Statistics Office (NSO) will release the official GDP figures for the April-June quarter on August 29. The government’s capital expenditure rose by 52% year-on-year in Q1. 123439349Construction & farm sectors keyAviation cargo traffic, goods and services tax (GST) collection, and steel production also recorded growth. “GDP growth is expected to be supported by
