RBI flags ‘emerging signs of stress’ in small firms

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The Reserve Bank of India has warned there are “emerging signs of stress” among small firms, even as the wider Indian economy recovers from the shock of Covid-19.

“Signs of incipient stress in micro, small and medium enterprises (MSME), as also in the micro finance segment, call for close monitoring of their portfolios,” said the RBI in its financial stability report, published on December 29.

Public-sector banks tended to be seeing higher rates of non-performing assets (NPAs) in their lending

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