NEW DELHI: Non-performing loans (NPLs) in the Indian banking sector is likely to witness an uptick and may shoot up to 11% of gross loans in the next 12-18 months, S&P Global Ratings said on Tuesday.
It said forbearance is “masking” problem assets for Indian banks arising from Covid-19 and the financial institutions will likely have trouble maintaining momentum after the proportion of NPLs to total loans declined consistently so far this year.
