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Signs of rising asset quality stress spook Indian bank stocks


Published on 2025-01-20 02:00:50 - Reuters
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  • The stock prices of Indian private lenders that have reported an increase in bad loans in their personal loans and micro-credit businesses are bearing the brunt of investors' fears of a U-turn in the asset-quality cycle for the country's banks.

The article from Reuters discusses the increasing concerns over asset quality in Indian banks, which have led to a significant drop in bank stock prices. On January 20, 2025, shares of major Indian banks like HDFC Bank, ICICI Bank, and Kotak Mahindra Bank fell sharply, with declines ranging from 2% to 4%. This downturn was triggered by reports of rising non-performing assets (NPAs) and potential loan defaults, particularly in sectors like real estate and small businesses. Analysts are worried that the economic recovery post-COVID might be faltering, with new stress points emerging in the banking sector. The article also mentions that despite earlier optimism about India's economic growth, the recent trends suggest a need for banks to bolster their provisions for bad loans, which could impact their profitability and investor confidence.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/finance/signs-rising-asset-quality-stress-spook-indian-bank-stocks-2025-01-20/ ]
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