The slowdown would be pronounced in the first half, while the second half should find support from expected monetary easing, consumption, and statistical low-base effect, Crisil said at the releaseof its report on India’s FY20 outlook titled ‘Uphill Trek’.
According to the agency, public sector banks, which account for over 80 per cent of the NPAs in the system, alone could see gross NPAs climb down over 400 bps to approximately 10.6 per cent by March 2020, from a peak of 14.6 per cent in March 2018.
In other words, while as much 85-90 per cent of the bond issuances in India are by ‘AAA’ and ‘AA’ rated companies, if they are assessed on the global scale, their ratings would be rated below the ‘BBB’ category.
Earlier this month, Maharashtra government announced that there would be no difference in the MRP of food products sold outside and inside multiplexes in the state and viewers will be free to carry their own eatables inside the multiplex.
Growth in unsecured loans is on account of a surge in discretionary spending, increased availability of customer data, faster disbursements driven by technology, and lower interest rates in some segments.
“Accounting for the MTM losses over four quarters would mean nearly Rs 8,000 crore provisioning relief including write-backs for banks in the last quarter of fiscal 2018," Crisil director Rama Patel said.