Banking system NPAs may rise to 8-9% by end of FY22, says Crisil

Stressed assets may rise to 10-11% by the end of FY22, assuming 2% of assets are restructured by the banks

The gross non-performing assets (NPAs) of Indian banks may rise to 8-9 per cent by the end of this fiscal year (FY22), 50-150 basis points higher than FY21 levels, but much below the FY18 levels when NPAs reached a peak of 11.2 per cent, said rating agency Crisil in a research note.

Also, the stressed assets of the banking sector may touch 10-11 per cent, assuming 2 per cent of assets will be restructured by the end of FY22, the rating agency said.

The projections are made on the assumption that the Indian economy will grow at 9.5 per cent this year