Economic Survey 2025 Mengers The Increasing Pressure of Unsecured Loans on the Banking System | Economic Survey 2025: This warning given in Economic Survey today, said

Budget 2025: According to the Economic Survey 2025, India’s banking system is healthy and adequate capitalized, but rising pressure in unsecured loans and fluctuations in the global market have created new risks. Total non -performing asset (NPA) of the banking sector has reached a 12 -year low of 2.6 percent, but there is increasing concerns about unprotected personal logan and credit card default.

Danger signs on financial stability

As of September 2024, the new growth of 51.9 percent NPA in retail portfolio was due to a decline in unsafe debt book, leading to threat to financial stability. Apart from this, in December 2024, the Reserve Bank of India (RBI) Financial Stability Report (FSR) mentioned that about half of the personal loan and credit card holders also has large secured loans like home or vehicle loans. If there is a lapse to compensate for a small loan, then the risk of lapse in the entire credit portfolio may increase.

Loan increasing scope

RBI increased the risk load on borrowings by 25 basis points in November 2023 to look at the growing scope of the loan and to stop it. Despite this, a large loan is being given on a large scale. Home loans are being given on the most new house purchase. The rate of loan is still high, but due to some strictness in recent months, it was reduced. The Economic Survey also mentioned loan-limit imbalance, that is, loans are being taken and their compensation is being reduced.

Economic survey warned

The Economic Survey stressed that the Macro stress test shows that banks are able to face adverse economic conditions while maintaining capital adequate. The Economic Survey warned that any change in the American stock market can affect the Indian market.

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