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.
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