The Reserve Bank of India office in Mumbai. (GettyImages)As per a Reserve Bank of India (RBI) report on trends and progress of banking in India, the total Non Performing Assets (NPAs) in India’s banking sector have seen a decline for the first time in seven years, Times of India has reported.
This has been aided by the Insolvency and Bankruptcy Code (IBC) and a conducive policy environment. As per data, the total NPAs declined from 11.2 per cent in March 2018 to 9.1 in March 2019.
The report states that a decline in the slippage ratio along with a reduction in outstanding GNPAs helped in improving the GNPA ratio.
While a section of the write-offs was achieved due to aging of loans, recovery efforts received a boost from the IBC.
“The restructured standard advances to gross advances ratio began declining after the asset quality review (AQR) in 2015 and reached 0.55% at end-March 2019”, adds the report.
The report though claims that credit growth in India has remained muted and the overall health of banks is also seeing a decline.
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