Next set of asset quality woes for lenders to come from MSME segment

Topics MSMEs | asset quality review | NPAs

Every asset quality cycle has a pattern. The previous one, which lasted from financial year 2015-16 (FY16) to 2018-19 (FY19), was dominated by lumpy corporate sector loans.  And just as that segment was being cleaned up, there are indications that the next wave of woes could come from the micro, small and medium enterprises (MSMEs), and retail segments.  Data published this week by TransUnion CIBIL, in collaboration with SIDBI, reveal some unnerving statistics that indicate the brewing trouble. Sample this: While there has been an increase in credit enquiries from M.....

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