NPAs Under Tight Leash
Non-performing assets have dipped but it's too early to uncork the bubbly as global slowdown impacts export and MSME sectors.
Non-performing assets have dipped but it's too early to uncork the bubbly as global slowdown impacts export and MSME sectors.
Profit of Indian lenders grew 38.4% in 2022-23, led by strong growth in net interest income and significant reduction in provisions
Moody's expects the Indian economy will remain vulnerable to bouts of heightened financial market volatility.
While NPAs have come off their FY18 peak, they still remain far from their all-time lows.
Restructured standard advances ratio, especially of services and retail loans, has shown a sharp increase in FY21 though. Some of these could turn into NPAs, adding to banks’ stress assets.
The ARCs, the quintessential bad banks, can help the commercial banks focus on underwriting good loans, supporting GDP growth.