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Asset quality pressure on banks to moderate by FY22-end, says Icra

Maintains stable outlook on lenders, sees NPAs declining to 2.5% by March 2022, from estimated 3.1% in March 2021

RBI stress test shows banks asset quality might improve in 2019
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The Net NPAs would also move up to 3.1-3.2 respectively by March 2021 from 2.2 per cent as of September 2020 on elevated credit provisions during H2FY21 as well

Abhijit Lele Mumbai
Asset quality pressure on banks in India is likely to moderate with net non-performing assets (NPAs) declining to 2.5 per cent by March 2022 (FY22) from an estimated 3.1 per cent in March 2021, according to rating agency Icra. 

The loan restructuring volume is likely to be lower at 2.5-4.5 per cent of advances than initial estimates of 5-8 per cent of advances, it added.

Icra said in a statement that moratorium on loan repayments is over, though the Supreme Court directive on asset classification is awaited. In this backdrop, the Gross NPAs are likely to rise to 10.1-10.6 per

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First Published: Dec 28 2020 | 3:47 PM IST

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