India's Banking Sector Anticipates Decline in Bad Loan Rate by 2026

According to PANews, the Reserve Bank of India (RBI) has released a financial stability report indicating that the bad loan rate in India's banking system is expected to decrease to 1.9% by the fiscal year 2026-27, down from 2.1% in September 2025. However, the report highlights rising risks in non-banking financial companies (NBFCs), with their bad loan rate projected to increase from 2.3% to 2.9%. The report also reiterates concerns about stablecoins, emphasizing their potential risk to macro-financial stability and supports the prioritization of central bank digital currencies (CBDCs) by countries to maintain financial order.