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Banks face bumpy ride on subdued credit demand
Sluggish credit demand is squeezing banks' net interest income as shrinking loan books force lenders to auction assets like vehicles and homes to recoup losses.
Commercial banks have taken a hit in their core lending business amid subdued demand for credit, even as lending rates and the industry's non-performing loans remain stubbornly high.
The slump in credit demand has put pressure on banks' net interest income (NII) as their loan book shrinks even as lenders step up auctions of assets, including motor vehicles and homes, to recover loan losses.
