The asset quality of banks showed improvement with gross non performing assets’ (GNPAs) ratio declining to 10.8 per cent in September 2018 from 11.5 per cent in March 2018, a Reserve Bank of India (RBI) report said on Monday.
The net NPAs ratio also witnessed a fall at 5.3 per cent in September 2018 as against 6.2 per cent in March 2018, RBI said in its Financial Stability Report.
“In a sign of possible recovery from the impaired asset load, the GNPA ratio of both public and private sector banks showed a half-yearly decline, for the first time since March 2015, the financial year-end prior to the launch of asset quality review (AQR),” the report said.
GNPAs of State-run lenders improved to 14.8 per cent in September 2018 from 15.2 per cent in March 2018, the report said.
Private sector banks saw gross NPAs falling to 3.8 per cent in September 2018 from 4 per cent in March 2018.