Recently, Dewan Housing Finance Corporation Limited (DHFL) has deceived a consortium of banks driven by the Union Bank of India to the tune of Rs. 35,000 crore through financial misrepresentation.
According to the RBI data, corporate loans account for nearly 70% of these bad loans, while retail loans, which include car loans, home loans and personal loans, account for only 4%.
In RBI’s Financial Stability Report 2021, there is a projection of the gross NPAs of banks rising from 6.9% in September 2021 to 8.1% of total assets by September 2022 and to 9.5% under a severe stress scenario.
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