Shriram Finance recently flagged a negative surprise, with asset quality deteriorating across MSME, commercial vehicle, tractor, and gold loan portfolios. Management noted that inconsistent income is causing early payment hiccups. Consequently, loans showing warning signs (Stage 2) and loans in default (Stage 3) rose by almost 7% and 4.6% respectively—slightly above the 6.7% and 4.5% uptick in the December quarter, noted HDFC Securities.
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