Mumbai: Indian banks have seen the worst deterioration in asset quality owing to Covid-19 pandemic compared to other advanced economies, according to the data released by the RBI’s Financial Stability FSR report.
While all countries saw a year on year increase in the default rate among both corporate and retail borrowers in the fourth quarter of last fiscal year, it has been more pronounced in the case of Indian banks.
RBI’s FSR collated the median and adjusted default rates in the retail and corporate portfolio of banks across 7 major economies including India.
According to the report, the median or weighted average default rate in the corporate portfolio of Indian banks spiked to 2.86 at the end of fourth quarter of fiscal year 2020