Unsecured loan slippages could dent banks' Q3 earnings - Banking & Finance News

Banks are expected to see moderate compression in the third quarter due to an increase in slippages from unsecured loans, such as credit cards and microfinance. Unlike previous quarters, where many lenders outpaced system-wide loan growth, credit growth for banks is projected to align with the industry average of around 12%. Experts suggest that, amid challenges in deposit mobilisation, subdued corporate credit growth, and ongoing asset quality stress in certain segments, banks may take a more..