Bad loans of listed domestic banks shrink by Rs 220 billion in Q1

Persistent efforts of recovery from a variety of loans - large-size, medium-size and small enterprises, retail and farm sector - are beginning to bear fruits

Gross non-performing Assets (GNPAs) of listed domestic banks dipped by Rs 220 billion in the first quarter ended June (Q1FY19), sequentially, compared to the previous quarter (ended March), indicating that the asset quality recognition cycle is almost over.

An analysis of the results analysis of 40 listed banks revealed that GNPAs declined to Rs 10.03 trillion at the end of June 2018 from Rs 10.25 trillion in the previous quarter. The previous four quarters had showed a consistent rise.  

The country's largest lender SBI, for instance,   saw a sharp dip of Rs 105.87 billion to Rs 2.12 trillion in June from Rs