NBFC bad loans seen rising under baseline scenario

UNDER THE BASELINE scenario, the system-level gross nonperforming asset (GNPA) ratio of non-banking financial companies (NBFCs) is expected to rise from 2.3% in September to 2.9% by September 2026,according to stress tests conducted by the Reserve Bank of India.

- FE BUREAU

As asset quality weakens, the sector’s aggregate capital adequacy ratio (CRAR) is projected to decline from 22.8% to 21.7% overthe same period.Despite the moderation, capital levels at the system level would remain well above the r