As bad loan recognition process nears completion, gross non-performing loans of banks improved to 9.1 per cent as of end-September 2019, compared to 11.2 per cent in FY18, says an RBI report.
Net non-performing assets (NPAs) of all commercial banks reduced to 3.7 per cent in FY19 as against 6 per cent in FY18.
“The gross NPA ratio of all banks declined in FY19 after rising for seven consecutive years, as recognition of bad loans neared completion,” RBI said in its report on Trend and Progress of Banking 2018-19.
It said the improvement in asset quality was driven by state-run lenders that experienced a drop both in the gross NPA (GNPA) and net NPA ratios.
Decline in the slippage ratio as well as a reduction in outstanding gross NPAs helped in improving the GNPA ratio, the report said.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.