Scheduled commercial banks` GNPA ratio fall to 3.2% at end-September 2023: RBI
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
The Reserve Bank of India (RBI) in a report titled ‘Report on Trend and Progress of Banking in India 2022-23’ has said the gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs) fell to a decadal low of 3.9 per cent at end-March 2023 and further to 3.2 per cent at end-September 2023.
It stated the improvement in asset quality of banks, measured by their GNPA ratios, that began in 2018-19 continued during 2022-23. During 2022-23, around 45 per cent of reduction in GNPAs of SCBs was contributed by recoveries and upgradations. The slippage ratio - which measures new accretions to NPAs as a share of standard advances at the beginning of the year - moderated during 2022-23 and further in the first half of 2023-24.
Further, it said the Indian banking system and non-banking financial companies (NBFCs) remain sound and resilient, backed by high capital ratios, improved asset quality and robust earnings growth. This is supporting a double digit credit growth and domestic economic activity.
