Bad loan provisions increased in March qtr amid microfin stress

Wait 5 sec.

Loan loss provisioning by banks, especially private sector banks, increased in the March 2025 quarter due to higher slippages and asset quality pressure in microfinance loans. NPA provisioning rose sequentially and year-on-year, with 22 banks reporting an increase. Stress in the microfinance portfolio is expected to continue, potentially leading to further slippages in the coming quarters.