NPA of public sector banks expected to reach 3.5% in six months, FICCI-IBA released report
NPA: The NPA of 77% of the banks surveyed has declined in the last six months. The asset quality of public sector banks has improved more than that of private sector banks. This survey was conducted between July and December 2023. A total of 23 banks including private, government and foreign banks participated in it.
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The bad loans or NPAs of the country's public sector banks have declined in the last six months. It is expected to further reduce to 3 to 3.5% in the next six months. A report released by FICCI and the Indian Banks Association states that during this period, the NPA of 67% of private sector banks has also declined.
In the last six months, 77% of the banks surveyed have seen a decrease in NPA. Compared to private sector banks, the asset quality of public sector banks has improved more. The time frame for this survey was July 2023–December 2023. Participating banks included 23 private, public, and international banks. They all have a 77% market share. The non-performing assets (NPA) of all government banks have decreased. No government or foreign bank's nonperforming assets (NPA) have increased in the last six months. Private banks' NPA has climbed by 22%.
Industries with high NPAs include food processing, textiles, and infrastructure. In the upcoming six months, 41% of banks predict that credit growth in the non-food industry will exceed 12%. 18% expect non-food industry credit growth to exceed 12%.
