A Punjab National Bank signboard. (Dan Kitwood via Getty Images)In a recently released report, noted credit rating agency CRISIL has estimated that amidst higher recoveries and slowdown in fresh bad loans, the non performing assets (NPAs) of Indian banks are expected further dropped to eight per cent by March 2020, reports The Economic Times.
The development signals a continuation in the improving health of the financial system; gross NPAs among Indian banks have dropped by 2.2 per cent in two years, from 11.5 per cent recorded in FY18 to 9.3 per cent in FY19.
CRISIL noted in its report that the asset quality of the banks is expected to witness a decisive turnaround this fiscal (FY20) with the gross NPAs reducing by 350 basis points (3.5 per cent) over two years since March 2018.
The report also underscored that the public sector banks which account for over 80 per cent of the NPAs in the system are expected to see their NPAs drop by a remarkable 400 basis points (4 per cent) from a peak of 14.6 per cent in March 2018 to 10.6 per cent in March 2020.
An Appeal...
Dear Reader,
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.