India Inc's big boys: Share of large borrowers on banks' books decline

The share of the top 100 large borrowers (Rs 5,000 crore and above) in the aggregate loan portfolios and gross non-performing assets of banks sustained its downward trajectory, declining to 50.5 per cent and 73.5 per cent respectively in the quarter ended September 2020. However, large advances in the SMA-0 (special mention accounts) category registered a quantum jump (155.6 per cent) over the previous quarter and 245.6 per cent over March 2020 levels, portending slippages in the ensuing quarters.

SMA-2 (due past between 30 and 60 days) ratios of large borrowers increased for private and foreign banks, while declining for state-run banks. Admittedly, the asset classification standstill inhibits the true underlying economic categorisation of assets, although the incipient trend is worsening.