Gross NPA ratio improves to 9.1% at Sept end from 11.2% y-o-y: RBI

Net non-performing assets (NPAs) of all commercial banks reduced to 3.7 per cent in FY19 as against 6 per cent in FY18.

As the bad loan recognition process nears completion, the health of the banking system has improved with the gross non-performing loan ratio remaining stable at 9.1 per cent as of September-end, the same level as in FY19, according to the RBI.

However, the numbers indicate major improvement on a full-year basis, as in FY18 the ratio stood at a high of 11.2 per cent and slipped to 9.1 per cent in FY19, the RBI said in its annual report on trends and progress of banking in 2018-19.

Reflecting the improvement in the health of the banking system, net NPAs nearly halved to