Apart from the seasonal impact, heightened due to general elections and heat waves across the country that affected business activities, most private lenders saw a higher formation of fresh bad loans emanating from retail, especially personal loans and credit cards. Agriculture loans also contributed to some stress, according to post-results commentary by several banks.
Uday Kotak lauds MUFG stake buy in Shriram Finance but flags big question on next move
Uday Kotak welcomed MUFG Bank’s Rs 39,618 crore investment in Shriram Finance, questioning whether it should remain an NBFC or eventually seek a banking licence