Fresh bad loans may rise in FY27, private banks under more pressure: Icra

Fresh non-performing assets in Indian banking are likely to rise this fiscal, with private banks under greater pressure due to unsecured retail and MSME exposure, Icra said. It projects fresh NPA generation at 0.8% for public sector banks and 2.5% for private banks in FY27, but expects healthy profitability and a gross NPA ratio of 1.7-1.8% by March 2027.