Banks Face Rising Slippages in Retail, MSME Segments: Report

• Fresh slippages in the banking sector are expected to increase due to stress in retail and MSME segments.
• Despite rising slippages, overall asset quality is projected to remain strong, with GNPAs and NNPAs at benign levels.
• Credit growth is expected to be Rs 25-26 lakh crore (13.7-14.3% YoY) for FY26, driven by retail and MSME segments.
• Credit offtake picked up in Q3FY26, aided by sustained economic activity and demand for channel financing and retail loans.
• NBFCs face pressure with rising slippages, especially in unsecured segments like microfinance and personal loans.