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

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

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