MUMBAI: The Reserve
Bank of India
(RBI) has warned that bad loans in banks could rise to a 20-year high as a result of the economic crisis triggered by the Covid-19
pandemic
. According to the central bank, bad loans could rise from 8.5% in March 2020 to 12.5% by March 2021 under its baseline scenario, and 14.7% if the stress is severe.
In its financial stability report, the RBI hinted at a restructuring of stressed loans going forward. The central bank pointed out that globally governments and regulators