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Banks' net NPA ratio at 10-yr low, GNPAs continue downward journey: RBI

FSR shows lenders can absorb shocks without capital infusion

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However, the write-offs to gross NPA ratio increased in the first half of 2022-23 on an annualised basis, after declining for two consecutive years

Manojit SahaSubrata Panda Mumbai
The rise in profitability that aided banks to improve their provisions has resulted in net non-performing assets (NPAs) to net advances ratio falling to 1.3 per cent in September 2022 – the lowest in 10 years — the Reserve Bank of India’s (RBI’s) Financial Stability Report said.

Net NPAs were at similar levels back in March 2012. As of end-September, net NPAs of private banks had fallen to 0.8 per cent, as against 1.8 per cent for public sector banks (PSBs).

“The quarterly slippage ratio, which had been rising since December 2021, cooled off during Q2, 2022-23, with considerable improvement recorded by

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First Published: Dec 29 2022 | 9:32 PM IST

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