Small finance banks' asset quality to improve, GNPA to drop by 120 basis points by March 2027: Crisil
Small finance banks anticipate improved asset quality this financial year.
Gross non-performing assets are projected to decline significantly by March 2027.
This improvement stems from microfinance portfolio recovery and stable non-microfinance growth.
Tighter underwriting practices have strengthened borrower selection in microfinance portfolios.
Borrower over-indebtedness caused past credit stress in microfinance books.
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