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Bank NPAs could hit nearly 15% by March 2021 in worst-case scenario: Report

Indian banks have been battling rising bad loans for years but managed to get gross NPAs down to 8.5% in March, compared to 9.3% in September 2019

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2 min read Last Updated : Jul 24 2020 | 8:10 PM IST

Bad loans in the banking system could soar to almost 15% of total loans by March 2021 as the coronavirus crisis leads to rising levels of household and corporate debt, the Financial Stability and Development Council said in a report published on Friday.

Indian banks have been battling rising bad loans for years but managed to get gross non-performing assets (NPAs) down to 8.5% in March, compared to 9.3% in September 2019, following strict new rules imposed by the central bank.

As India's economy feels the impact of the Covid-19 pandemic, macro stress tests indicate that the gross NPA ratio of all

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