Credit risk in Indian banks expected to rise due to time persistence.
The study looked at credit risk in Indian banks over 19 years. They found that if a bank had more defaults in the past, they are likely to have more defaults in the current year. Factors like profitability, efficient management, diverse income sources, proper credit screening, and following regulations can improve a bank's credit quality. It's important for banks to avoid accumulating nonperforming loans and to have good managerial practices to maintain good credit quality.