Signs of slippage

Certain segments of borrowers require attention

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An analysis of the first-quarter (April-June 2025) results of private-sector banks has shown that slippages have increased across the spectrum. It is also worth noting, as reported by some banks, that stress has emerged from unsecured loans and the agricultural sector. In the case of Axis Bank, for example, slippage increased by over 70 per cent sequentially to ₹8,200 crore. However, at aggregate level, gross non-performing assets (GNPAs) increased marginally to 1.57 per cent, against 1.28 per cent in the previous quarter. In the case of Yes Bank, gross slippage increased to 2.4 per cent of advances, as against 2 per cent in the previous quarter. A clear picture will emerge once the results of all the banks, including public-sector banks, are out.

These are still early reports, but the focus may be required on some segments of lending before it becomes a bigger problem.