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Indian Banks NPA: Non-performing assets or bad loans of Indian banks are likely to come down by 0.90 per cent in FY 2022-23 and will come down to less than five per cent during this period. This estimate was expressed on Thursday in the study of Assocham-Crisil ratings. The study also said that the gross NPAs of banks could come down to less than four per cent by March 31, 2024, the lowest level in a decade. The study attributed the decline in gross non-performing assets (NPAs) to post-Covid economic reforms and higher credit growth. You can understand NPA in such a way that how much money of banks is stuck in the form of loan, which is not getting returns. The same is called non performing asset.
The biggest improvement will be in corporate loans
It said the biggest improvement would be in corporate loans, where gross NPAs stood at around 16 per cent as on March 31, 2018, and are expected to come down to two per cent in the next financial year. Assocham Secretary General Deepak Sood said this reflects the strong risk management and underwriting by banks in recent years, along with cleaning up of accounts, which has led to higher preference for borrowers with better credit profiles. The problem of double-accounting has been resolved to a large extent and there has been a significant improvement in credit growth. Our banking sector remains strong even in the face of persistent global challenges. The study said gross NPAs in the MSME segment, which has been hit the most during the pandemic, could rise to 10-11 per cent by March 2024 from around 9.3 per cent as on March 31, 2022.
In the last five years the debt of so much rupees is stuck
Banks have written off loans worth Rs 10,09,511 crore for non-receipt during the last five financial years. That is, the hope of recovery of such loan becomes very less. If this amount were to be weighed against the cost of the expressway being built in the country, then India would have made 11,000 km long expressway in this amount. Let us tell you that the cost of making 1 km expressway comes to about Rs 9 crore.
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