The banking system’s gross non-performing assets are set to decline to at least 7.1% by March 2022, from 7.6% at FY21-end, a domestic ratings agency said on Wednesday.
The NPAs will go lower on higher recoveries and upgrades, and also faster credit growth, ICRA said,
Fresh accretion to the NPAs will be higher in FY22 due to the absence of any regulatory dispensations such as moratoriums, the agency said.
The Reserve Bank’s financial stability report had said GNPAs as at March 2021 were 7.6% and estimated they would rise to 9.8% by FY22-end under its base-case assumptions.
