Report on NPAs

The banking sector, led by public sector banks, has been a 7.5 per cent fall in bad loans, or gross non-performing assets (NPAs) from
` 9,92,964 crore in the second quarter of last year to ` 9,18,487 crore in September 2019 as they managed to achieve a considerable reduction in loan slippages and boost recoveries.

PSBs managed to bring down their bad loans by about ` 80,000 crore during the 12-month period ended September 30, 2019.

Significantly, PSBs registered a contraction in their gross NPA amount by 10 per cent and stood at ` 7,27,296 crore for Q2FY20, compared to ` 8,07,737 crore in Q2FY19, as per a study by Care Ratings.

The decline in gross NPAs of banks had come after banks reported an 18.9 per cent rise in bad loans to over ` 10 lakh crore during the second quarter of last year.

State Bank of India reported a ` 44,000 crore decline in gross NPAs to ` 1,61,636 crore (7.19 per cent of advances) from ` 2,05,864 crore (9.95 per cent) a year ago.

Private banks posted a rise in NPAs with the Reserve Bank of India getting tough on under-reporting of NPAs.

Report on NPAs Gross NPA amount of private banks rose by over ` 6,000 crore – from ` 1,85,027 crore during Q2FY19 to ` 1,91,191 crore in Q2FY20, a rise of 3.3 per cent. The GNPA ratio for private banks, however, witnessed a slight moderation from 5.9 per cent to 5.4 per cent in the September quarter.