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Gruh Finance Ltd. today attributed the rise in its non-performing assets in the October-December quarter to the Goods and Services Tax-related disruptions. The transition to the new indirect tax regime may have hit self-employed people who were unable to pay back their loans, Gruh Finance’s Managing Director Sudin Choksey Told BloombergQuint in an interview.
The lender will wait for three quarters before taking a view the bad loans trajectory. Besides, he also sees some pressure on spreads in the coming quarter, given the steep rise in interest rates.
Watch the full conversation here: