Indian banks’ net non-performing assets at 15-year low

India not only remains the fastest growing economy in the world amid recession and slowdown across most of the advanced economies, but the net non-performing assets of its banks, private and public, have also dropped to a 15-year low in FY23.According to India Ratings and Research, an affiliate of the Fitch group, “Banks are seeing the best-ever asset quality in the past 10 years. A collation of the banks’ FY23 data indicates that their asset quality has improved substantially in line with the agency’s articulation in its various credit outlooks in the past two-three years. At a system level, the gross non-performing advances (GNPAs) and net non-performing advances (NNPAs) are at 4.0% and 1.0%, respectively.”The last time NNPAs were at 1.0% was back in 2008.“Public sector banks’ (PSBs) GNPA declined to 5.0% in FY23 from a peak of 14.1% in FY18, while that for private banks (Pvt Banks) reduced to 2.3% from 6.3%,” the report said.“NNPAs for the categories at 1.23% and 0.6%, respectively, were lower than the FY23 credit cost. Likewise, net slippages (gross slippages less recoveries and upgrades) have trended lower: below 0.5% for both PSBs and Pvt Banks. Both categories of banks are also seeing a convergence in their asset quality and credit cost related parameters,” the report added.Union Minister Rajeev Chandrasekhar hailed the development, also taking potshots at Congress for having “wrecked” the banking and financial sector during its successive regimes. “During India’s lost decade under Congress, India’s banking system was wrecked with sky high NPAs by crony lending to friends and families,” Chandrasekhar tweeted.“Under PM Narendra Modi ji, India’s banking and financial sector have been cleaned up, rebuilt and is strongest ever-and this strong financial and banking sector has played a big role in India’s post-Covid economic performance as world’s fastest growing economy,” the Union Minister added.(With inputs from agencies)Read all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.