The Reserve Bank of India has forecasted an increase in non-performing loans by 2026, leading to a decline in several Indian bank stocks. HDFC Bank saw a temporary drop of 0.7%, ICICI Bank fell 1%, Axis Bank decreased by 1.1%, IndusInd Bank slipped 0.9%, and Punjab National Bank declined by 0.8%.
According to the financial stability report released by the Reserve Bank of India, the ratio of non-performing assets in the Indian banking sector is expected to rise from 2.6% in September this year to 3% by March 2026.
