Loans with dues in excess of 90 days show spike in Dec 2020: ICRA

The loans with 90-day overdue (known as harder bucket delinquency) showed a spike across asset classes in December 2020 compared with the pre-moratorium levels due to the impact of the pandemic, according to ICRA.
 
The delinquencies, which were 0.6-0.7 per cent level in February, shot up to 3.4-3.6 per cent in case of SME and MFI segment by December, it said. The borrowers who missed their September, October, and November monthly instalments moved to the 90+ dpd bucket. Such is considerably higher in the SME and microfinance loans.
 
The incremental slippages in the softer buckets (0-30, 30-60 and 60-90 days past due) in retail loan pools has not seen any incremental material rise in December 2020 compared to previous months.

 

This indicates lower incremental build-up of fresh stress in the respective asset classes.