Public sector banks have decreased the most; NPA lowest after 2015

NPA lowest after 2015: Public sector banks have decreased the most, yet their share in total bad loans is about 80%.

Public sector banks have decreased the most; NPA lowest after 2015

After recovering from the epidemic, the country's banking system has strengthened amid the impact of the Russia-Ukraine crisis, inflation and rising interest rates. The gross NPAs of 31 listed banks declined by 1.85% to 5.66% in the April-June quarter. It was 7.51% in the same quarter of the previous fiscal. There has never been such a low NPA ratio after 2015. However, loan write-offs have also played a role in this.
The gross NPA ratio of public sector banks has decreased the most by 2.21%. The NPA ratio for the last quarter stood at 7.18%, as against 9.39% a year ago. During this period, the gross NPA of private banks decreased by 1.10% and that of small finance banks by 2.07%. Despite this, the share of public sector banks in the total NPAs of the country's banking system remained around 80%, which is almost the same as last year.
According to a report by Fortune, these resolution mechanisms introduced one after the other has played a major role in reducing the NPA ratio of Indian banks.

Help in reducing NPA from the tribunal
1. Insolvency and Bankruptcy Code
2. One-Time Settlement
3. Debt Recovery Tribunal
4. Corporate Debt Restructuring
5. SARFAESI Act

There are many reasons for declining NPAs in the banking system. These include massive recovery, loan restructuring and write-offs. The main reason for this is the low slippage ratio. Means the cases of new NPAs have come down rapidly.-Madan Sabnavis, Chief Economist, Bank of Baroda

For Latest Update from Sangri Today Like us on Facebook and Follow on Twitter. Fore Latest Video News Subscribe our channel on YOUTUBE. Also Join Our Telegram Channel