The biggest improvement will be in the corporate segment, where gross NPAs are seen falling below 2% next fiscal, from a peak of about 16 per cent as on March 31, 2018
Reflecting further improvement in asset quality of banks, their gross non-performing assets (GNPAs) are expected to decline to 5.0 per cent by March 2023. They may even touch decadal low of about 4 per cent by March 2024, riding on post-pandemic economic recovery and higher credit growth, according to rating agency Crisil.
This asset quality improvement in the corporate segment follows a significant clean-up of bank books in recent years, and strengthened risk management and underwriting. This has also led to greater preference for borrowers with better credit profiles. The deleveraging and strengthening of India Inc balance sheets helped as
First Published: Sep 21 2022 | 4:52 PM IST