Analysts see delinquencies rising in unsecured biz, micro

Delinquencies are beginning to increase in the unsecured business loans and micro-LAP, said analysts.

“Factoring in the rising asset quality noise and some growth fatigue after supernormal growth over the past few years, we had trimmed growth estimates for select banks with higher reliance on MSME/SBL (Small business loans) lending or exposure to US exporters recently by 50-100 bps,” Emkay Global said.

The recent US tariff actions have already started to disrupt the order and payment flows, and margins for textile, gems and jewellery, engineering, and food processing units, which contribute nearly 5.5% of bank credit and could thus pose some risk to banks, the report said.

US tariff shock threatens MSME credit flow

Analysts believe that large and mid-size corporates operating in th