Private Banks Face Rise in Bad Loans, Provisions in Q1

In the first financial quarter of 2026, several private banks experienced a significant increase in the amount of unpaid loans, known as bad loans.

This rise was mainly due to problems with loans related to agriculture and small, unsecured loans.

For example, Axis Bank saw a big jump in these bad loans.

HDFC Bank also reported increased slippage, while ICICI Bank experienced a similar trend.

The banks have set aside more money to cover potential losses, with sources indicating the loan issues are normalizing and remaining elevated.