Sunday, October 25
Indian banks' profitability is at an inflexion point and is likely to moderate in 2025-26, hurt by higher delinquencies in unsecured loans and increased credit costs, India Ratings said on Tuesday. The rating agency said in a release that banks' rapid improvement in financial metrics seen over financial years 2021 to 2024 is likely to have peaked and will see an "inflexion point" in 2024-25. India Ratings has observed an increase in delinquencies in specific segments, such as personal loans, credit cards, and microfinance, that will weigh on banks' profits, it said. "This rise in delinquencies appears to be driven by a combination of self-employed individuals, those with informal or semi-formal income sources, and younger populations," it added. Indian banks had witnessed a sharp surge in
