UBS Securities red flags retail loans, sees credit cost soaring by up to 200 bps
According to Swiss brokerage UBS Securities, increasing default risks in retail unsecured loans of banks is likely to push up their credit losses by 50-200 bps. On October 8, the Reserve Bank had sternly warned bankers about their ballooning unsecured retail loans.
Banks for many years have been riding on the retail book as corporate demand still remains anemic. Image Courtesy: Reuters.