Mumbai, Oct 6 (PTI) Gross non-performing assets for the banking system’s micro, small and medium enterprises portfolio are likely to rise moderately to about 3.9 per cent by FY26-end, a domestic rating agency said on Monday.

The rise in the dud assets will be primarily driven by the impact of the 50 per cent tariffs slapped by the US on Indian exports entering the world’s largest economy, Crisil Ratings said.

It can be noted that the overall NPAs from the sector, constituting 17 per cent of the outstanding loans for the banking system, stood at 3.59 per cent at the end of FY25.

“This fiscal, we see NPAs in the MSME sector increasing moderately to 3.7-3.9 per cent. This is primarily due to the recent, steep hike in tariffs announced by the US," the agency’s director Subha Sri Narayanan s

See Full Page