Public sector banks doing better in managing NPAs vis-a-vis their private counterparts: FICCI-IBA survey
FICCI and banking association Indian Banks' Association (IBA) found.
A nonperforming asset refers to loans or advances that are on the brink of default.
According to the survey, a large majority (77 per cent) of the respondent banks reported a decrease in the NPA levels in the last six months.
All responding public sector banks have cited a reduction in NPA levels, while amongst participating private sector banks, 67 per cent banks have cited a decrease.
None of the respondent public sector banks and foreign banks have stated an increase in their NPA levels over the last six months while 22 per cent private banks reported an increase.
Among the sectors that continue to show high level of NPAs, most of the participating bankers identified sectors such as food processing, textiles, and infrastructure.
According to the survey, respondent banks were more sanguine about the asset quality prospects in the current round of the.
Over half of the respondent banks in the current round believe that gross NPAs will be in the range of 3 per cent — 3.5 per cent over the next six months. About 14 per cent respondents were of the view that NPA levels would be in the range of 2.5- 3.0 per cent.
As per respondents, some of the sectors that may continue to show NPAs over the next six months include textiles and garments, agriculture and gems and jewellery.
The eighteenth round of the survey was carried out for the period July to December 2023. Those banks that were surveyed together represent about 77 per cent of the banking
