Beating RBI estimates, NPAs fall 9.3% in FY19: Crisil

Chennai: The system-wide non-performing assets stock has declined 9.3 per cent in March, faster than the Reserve Bank’s estimate, a report said. It added that the numbers were steeply down from 11.5 per cent the year before.

The Crisil report comes at a time when most banks are at the cusp of an end of the NPA pains after a prolonged period, and are concentrating on the resolution now.

“System-wide NPAs have declined in fiscal 2019 to 9.3 per cent as of March after tripling to 11.5 per cent in the four fiscals till March 2018,” it said in a note on Monday.

In its half-yearly financial stability report in December, the Reserve Bank had estimated that the gross non-performing assets ratio might improve to 10.3 per cent by March from 10.8 per cent in September 2018.

“In a sign of possible recovery from the impaired asset load, the gross NPA ratio of both public and private sector banks showed a half-yearly decline, for the first time since March 2015, the financial year prior to the launch of asset quality review by the RBI,” Crisil said in the report.

NT Bureau