‘NPAs may go up by 2026, write-offs signal stress’

Indian banks’ gross NPAs stood at a 12-year low of 2.6% in Sept 2024, but RBI’s stress test warns it could rise to 3% by March 2026. Concerns include increasing write-offs by private banks and higher fresh NPAs in retail loans. The stress test also highlighted risks in microfinance and consumer credit segments, along with global tokenisation threats.