Bank asset quality improves as economy turns around
Public sector banks’ NPA ratio has come down from 9.4% in June 2021 to 7.2%, a drop of 220 bps, while at private banks, the decline was 110 bps, from 4.2% to 3.1%, in the same period. One basis point is one-hundredth of a percentage point.
MUMBAI : Aided by a pickup in economic activity, asset quality in the banking system improved over the past year. Bad loans declined about 185 basis points to 5.7% of all loans, although concerns around restructured credit remain.