In the financial landscape, public sector banks may face fresh non-performing asset generation reaching Rs 1 lakh crore by FY27, while private sector banks could see slippages climbing to Rs 1.3 lakh crore. Nonetheless, the overall asset quality is predicted to stay stable, ensuring manageable gross NPAs. Bank profitability is expected to hold steady, aided by credit growth driven by retail and MSME lending, alongside corporate credit expansion.
