Recently, the
RBI
recorded a
very high credit growth
in the personal
loan segment and has started monitoring the situation.
UBS also found that the share of borrowers with
weak profiles
has increased in the Indian Banking Sector.
UBS also expects the
credit costs
for financial institutions to rise
, adding to the banking sector's woes.
It has
downgraded
its rating for the shares of
SBI
and
Axis Bank
.
However, a recent report by
McKinsey and Co.
reveals that banks globally posted their
best-ever profits
in a decade.
It also mentions that the revenue of the Indian Banking Sector could grow by
CAGR of 10%
in 2021-30.
For now, there does not seem to be an imminent threat of a crisis.
However, the RBI has kept its guard up since the
Silicon Valley Bank
and
Credit Suisse
collapse.
What else did the report say and is the
Indian Banking Sector
completely insulated from a
Banking Crisis?
Learn more