Stress riding pillion on two-wheeler loans, may puncture asset quality: Moody's

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Moody's Ratings warns of potential asset quality decline in Indian banks' vehicle loan portfolios. The agency cites slowing vehicle sales growth post-pandemic. Two-wheeler loans are particularly vulnerable due to younger, lower-income borrowers. System-wide non-performing loans are expected to remain between 2-3%. Unsecured loan defaults are rising, while housing loans are expected to remain stable.