 "Non-performing advances of public sector banks at multi-year lows")
The non-performing advances (NPAs) of banks are at multi-year lows, supported by substantial write-offs, especially for state-owned banks.
The overall loan write-offs by public sector banks (PSBs) exceeded Rs 10 trillion during the FY2017-2023 period.
This followed the banking industry-wide asset quality review the Reserve Bank of India (RBI) initiated in FY16. The closing stock of write-off pool stood at Rs 7.5 trillion at the end of March 2023, up from Rs 6.8 trillion a year ago.
The recoveries from this pool are expected to continue to contribute significantly to the profitability of PSBs even in a scenario of low recoveries.
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