Over the previous six months, NPAs have decreased at all public sector banks: Take a look

According to a FICCI-IBA Bankers’ poll issued on Thursday, all public sector banks in India demonstrated a decrease in non-performing asset levels during the previous six months; however, just 67% of private sector banks recorded a fall over the same time.

According to the poll, public sector banks reported higher asset quality than their private sector counterparts, with 77% of the responding banks reporting a decline in NPA levels in the previous six months.

From July to December 2023, the FICCI-IBA Bankers’ Survey conducted its 18th cycle. In all, 23 banks from the public, private, and international sectors took part in the poll. Based on asset size, the combined share of these banks is around 77% of the banking sector.

Gross non-performing assets are expected to be between three and five percent over the next six months, according to more than half of the banks included in the FICCI-IBA Bankers’ report, which was released on Thursday.

Sixty-seven percent of participating private sector banks reported a drop in nonperforming assets (NPAs), compared with all responding public sector banks (PSBs) reporting a decline. While 22% of private banks claimed an increase in nonperforming assets (NPAs) during the previous six months, none of the responding PSBs or foreign banks made this claim, according to the poll. The majority of the bankers who took part in the discussion highlighted industries including food processing and infrastructure as having a persistently high percentage of non-performing assets (NPAs).

67% of private banks record a drop.

A decrease in non-performing (NPA) asset levels was mentioned by 67% of the private sector banks that responded to the FICCI-IBA Bankers’ survey.
Compared to their counterparts in the private sector, none of the PSBs reported a rise in non-performing assets (NPAs) over the previous six months, and they all reported improved asset quality.