government banks There is good news for investors investing in stocks. In fact, the non-performing assets (NPAs) of all public sector banks (PSBs) have decreased in the last six months. This has been said in the report of FICCI-IBA Banker. According to the report, the burden of NPA on private sector banks has also reduced during this period. NPA of 67 percent private sector banks has reduced. The NPA of 77 percent of the banks surveyed has declined in the last six months. However, the asset quality of public sector banks has improved more than that of private sector banks.
Survey conducted on 23 banks
A total of 23 banks including government, private sector and foreign banks participated in the survey. These banks, classified by asset size, together represent about 77 percent of the banking industry. More than half of the banks included in the report believe that gross NPA will remain in the range of 3-3.5 percent in the next six months. “All the responding public sector banks have acknowledged a reduction in NPA levels, while 67 per cent of the participating private sector banks have seen a reduction in NPAs,” the survey said. “No PSB and foreign bank has seen an increase in NPA levels in the last six months, while 22 per cent of private banks have seen their NPAs increase.”
Share of NPA is higher in these sectors
Among the sectors where NPAs continue to remain high, most banks have identified sectors such as food processing, textiles and infrastructure. The survey also shows that the outlook for non-food industry credit over the next six months is optimistic, with 41 percent of banks expecting non-food industry credit growth to remain above 12 percent, while 18 percent feel that non-food industry credit growth will remain above 12 percent. -Food industry credit growth will be more than 12 percent. The growth in credit to industries will be in the range of 10-12 percent. Moreover, 36 per cent of banks believe that non-food industry credit growth will be in the range of 8-10 per cent.
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