NPAs Under Tight Leash
Non-performing assets have dipped but it's too early to uncork the bubbly as global slowdown impacts export and MSME sectors.
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December 2021
Banks' NPAs drop to 10-year low in March
Profit of Indian lenders grew 38.4% in 2022-23, led by strong growth in net interest income and significant reduction in provisions
SME loan delinquencies to rise despite RBI's rate pause: Moody's
Moody's expects the Indian economy will remain vulnerable to bouts of heightened financial market volatility.
Bank NPAs: Stirred, But Not Paused
While NPAs have come off their FY18 peak, they still remain far from their all-time lows.
Consumer Credit Growth At All-Time High
Restructured standard advances ratio, especially of services and retail loans, has shown a sharp increase in FY21 though. Some of these could turn into NPAs, adding to banks’ stress assets.
Let ARCs shoulder NPAs, banks focus on credit creation
The ARCs, the quintessential bad banks, can help the commercial banks focus on underwriting good loans, supporting GDP growth.
