Banks report lower NPAs for September quarter

Mumbai: Contrary to expectations that there would be an increase in bad loans in the banking sector due to Covid-19, the ratio of non-performing assets (NPAs) to total loans has improved during the quarter ended in September 2020. According to a report by Care Ratings, the ratio of gross NPAs of banks has fallen to 7.7% from 8.2% in June and 7.9% in March 2020.

At the end of the second quarter, public sector banks (including IDBI Bank), reported their gross NPA ratio at 9.7% compared to 10.2% in June 2020. Private sector banks too reported a decline in NPA ratio at 5% from 5.5%.