RBI: Banks’ NPAs at Red

Bad assets problem of the banking sector in the country is receding for the first time since 2015, according to the bi-annual financial stability report for December, published by the Reserve Bank of India on Monday.

But the non-performing assets are still too high for comfort.

The banks showed an overall improvement with their gross NPA (GNPA) ratio declining from 11.5% in March 2018 to 10.8% in September 2018.

However, stress was still on the rise in mining, food processing, and the construction sectors.

‘The banking sector appears to be on course to recovery as the load of impaired assets recedes. The first half-yearly decline in the gross NPA ratio since September 2015 and the improving provision coverage ratio, being positive signals,’ RBI Governor Shaktikanta Das said in the foreword to the report.

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