The pandemic-induced one-time loan restructuring will spike the system-wide gross non-performing assets to 11.5% by March, Care Rating said.
The rating agency expects 4-5% of the existing loans to be stressed and opt for restructurings through the course of the year.
The system-wide GNPAs stood at 8.2% in Q1FY21, down from 9.5% in Q1FY20, thanks to the recoveries and higher write-offs during the period.