Stable NPAs in Sept: RBI
Recent data from the RBI has revealed that the health of the banking system has improved with the gross non-performing loan ratio remaining stable at 9.1% in FY19, declining from 11.2% registered last fiscal. Similarly, the net NPAs nearly halved to 3.7% in FY19 from 6% in FY18. “The gross NPA ratio of all banks declined in FY19 (to 9.1% from 11.2% in FY18) after rising for seven consecutive years, as recognition of bad loans has neared completion,” the report stated.
It also said that cases referred for recovery under various mechanisms grew over 27% in volume and tripled in the value during the year, leading to a pile-up of bankruptcy proceedings.