Banks' bottom line gets a booster shot as bad loans continue to fall

Gross NPA ratio has come down to 6.9 per cent as of end September 2021, according to Reserve Bank of India (RBI) data

Commercial banks in the country continued with their improving asset quality trend in the October-December 2021 quarter with slippages remaining under control coupled with healthy recoveries and upgradation of asset classification.

The 28-listed banks reported improvement in bottom line with net profits rising 64.1 per cent year-on-year (YoY) and 21.5 per cent sequentially. This is mostly on account of a fall in provisions and contingencies.

The net interest income (NII) was Rs 1.38 trillion in Q3 of FY22, up 9.7 per cent YoY and 5.9 per cent sequentially. However, other income moderated to Rs 52,261 crore, down 3.1 per cent YoY and