New Delhi, Aug. 21 -- The credit costs of scheduled commercial banks (SCBs) in the country surged in the first quarter of the current financial year, even as their asset quality worsened marginally on a sequential basis, according to a report by CareEdge Ratings.

The report highlighted that the overall credit cost for SCBs rose sharply by 62.7 per cent year-on-year to Rs 0.44 lakh crore in Q1FY26.

It stated "Credit Cost Rises in Q1FY26; Asset Quality Worsens Marginally Sequentially".

However, the trend was not uniform across public sector banks (PSBs) and private banks (PVBs). While PSBs reported an improvement, PVBs faced a steep rise in provisioning requirements.

For PSBs, credit cost fell 4.8 per cent year-on-year to Rs 0.16 lakh c...