NPAs descending from the summit of March, says RBI

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However, the RBI pointed out that banks' profitability was still affected by declining revenues from loan badets and by the increase in funding required due to the deterioration in badet quality. .

That being said, she emphasized bank credit. growth that had accelerated in the last two quarters.

The RBI, in its comments to the Standing Committee on Finance, stated that gross and net PPNs of scheduled commercial banks had declined as a result of concerted efforts by the government and the government.

"As a result of these measures, the gross NPAs as well as the net NPAs of scheduled commercial banks, after peaking in March 2018, have declined for two consecutive quarters," said RBI. in his memoir examined by The Hindu.

The data show that the gross PPNs of all programmed commercial banks stood at 10.36 krona of lakh crores at the end of the quarter March 2018 and thereafter. It declined to 10.14 billion rupees by the end of September.

Public sector banks account for an overwhelming proportion of these gross NPAs, but even their contribution has declined slightly since March 2018. Public sector banks accounting for 86.6% of all gross NPAs of planned commercial banks have fallen 85.9% September 30, 2018.

The net NPAs of all scheduled commercial banks increased from NOK 4.54 million in March to NOK 4.10 million by September 30. As a result, the net percentage of NPA fell from 7.97% to 7.19%

Strong decline in slippages

"The annualized skid rate (ie the percentage of new NPAs in percentage of standard advances at the beginning of the quarter) also showed a downward trend in the last two quarters. again reflects the improvement of credit discipline, "the report says.

" Bank profitability, however, continues to be affected by declining revenues from loan holdings and needs to be maintained. the deterioration of badet quality, which will eventually crystallize into actual losses, "added the RBI. "However, lower NPAs, especially new slippages, will result in improved profitability in the future." The RBI said that although the banks' weak balance sheets had created significant obstacles to credit growth, they had nonetheless picked up steam for a year. year basis. Credit growth of scheduled commercial banks was 5.82% in September 2017 compared with the same month of the previous year, rising to 10.7% in September 2018.

"For the week ending October 26, 2018, growth in gross bank credit had further accelerated to 14.6 percent, "said the central bank.