TIL Desk/Business/New Delhi/ The asset quality of banks improved over the first-half of this fiscal with the gross non-performing assets (GNPAs or bad loans) ratio declining to 10.8 per cent in September, from 11.5 per cent in March, the Reserve Bank of India (RBI) said on Monday.
In its Financial Stability Report (FSR) released on the final day of 2018, the RBI also said that the net NPAs’ ratio also fell over the period in consideration to 5.3 per cent in September, as against 6.2 per cent in March.
“The asset quality of banks showed an improvement with the GNPA ratio of SCBs (scheduled commercial banks) declining from 11.5 per cent in March 2018 to 10.8 per cent in September 2018. Under the baseline scenario, GNPA ratio may decline from 10.8 per cent in September 2018 to 10.3 per cent in March 2019,” an RBI statement said.
“In a sign of possible recovery from the impaired asset load, the GNPA ratio of both public and private sector banks showed a half-yearly decline, for the first time since March 2015, the financial year-end prior to the launch of asset quality review (AQR),” the report said.
