Gross NPA of banks may come down to less than 4 percent by the end of 2023-24: Study
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The study also said that the gross NPAs of banks could come down to less than four per cent by March 31, 2024, the lowest level in a decade. The study attributed the decline in gross non-performing assets (NPAs) to post-Covid economic reforms and higher credit growth.
The non-performing assets or bad loans of Indian banks are expected to come down by 0.90 per cent in the financial year 2022-23 and will come down to less than five per cent during this period. This estimate was expressed on Thursday in the study of Assocham-Crisil ratings. The study also said that the gross NPAs of banks could come down to less than four per cent by March 31, 2024, the lowest level in a decade. The study attributed the decline in gross non-performing assets (NPAs) to post-Covid economic reforms and higher credit growth.
It said the biggest improvement would be in the corporate loan segment, where gross NPAs stood at around 16 per cent as on March 31, 2018, and are expected to come down to two per cent in the next financial year. Assocham Secretary General Deepak Sood said, “This reflects strong risk management and underwriting by banks in recent years, along with cleaning up of accounts, which has led to higher preference for borrowers with better credit profiles.
He said that the problem of double-accounting has been resolved to a large extent and there has been a significant improvement in credit growth. Sood said, “Our banking sector is very strong even in the midst of persistent global challenges.” The study said that gross NPAs in the MSME segment, which suffered the most during the pandemic, could increase to 10-11 percent by March 2024 , which was about 9.3 percent as on 31 March 2022.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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