The data reveals that write-offs have fluctuated over the period, with the highest figure recorded in 2020-21.
Authors
Deepanshu Mohan, Professor of Economics and Director, Centre for New Economics Studies (CNES), O.P. Jindal Global University, Sonipat, Haryana, India.
Aditi Desai, Research Analyst with CNES and a member of the InfoSphere Team.
Aryan Govindakrishnan, Research Intern with CNES.
Summary
The Reserve Bank of India (RBI) recently released its 29th Financial Stability Report, highlighting a “significant decrease” in the gross non-performing assets (GNPA) ratio, which “fell to a 12-year low of 2.8 percent”, while the net non-performing assets (NNPA) ratio of scheduled commercial banks (SCBs) declined to 0.6 percent as of March end 2024.
While this estimated reduction in NPAs signals a graded process towards macroeconomic stability and a projected positive route for higher bank profitability, it is imperative to scrutinise the aggregate data more closely.
Published in: The quint
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