RBI Governor Malhotra: No Worries Over Unsecured Loans' Asset Quality

RBI Governor Sanjay Malhotra reassured that there are no asset quality concerns from unsecured loans like microfinance. Despite a slowdown in credit growth, the proportion of non-performing assets remains satisfactory. Malhotra addressed deposit shifts and misselling issues and discussed the adoption of the MuleHunter platform by banks.

In a recent briefing, RBI Governor Sanjay Malhotra dismissed worries related to the asset quality of unsecured loans, including microfinance, noting that current levels are satisfactory and not concerning.

Addressing the observed rise in non-performing assets in unsecured loan segments such as personal loans and credit cards, Malhotra credited the RBI's intervention of increasing risk weights for successfully decelerating credit growth.

Malhotra further assured that microfinance institutions will continue receiving necessary attention. The Governor also discussed the healthy trend of deposited funds shifting towards equities, allaying fears over the banks' capacity to lend, and highlighted the adoption of the MuleHunter platform by 15 banks.

(With inputs from agencies.)