Banks face fresh slippages as retail and MSME stress builds ahead of earnings reports

Asset quality looks fine now, but slippages are coming

Banking sector asset quality is still holding up, but a new report expects slippages to rise in the near term. The pressure is concentrated in the retail and MSME segments, where stress is building. Even with today’s strong asset quality, investors may need to watch credit costs and delinquency trends closely as earnings approach.