Non-performing advances of public sector banks at multi-year lows

https://www.business-standard.com/industry/banking/non-performing-advances-of-public-sector-banks-at-multi-year-lows-123070701020_1.html

Clipped from: https://www.business-standard.com/industry/banking/non-performing-advances-of-public-sector-banks-at-multi-year-lows-123070701020_1.html

The closing stock of write-off pool stood at Rs 7.5 trillion at the end of March 2023, up from Rs 6.8 trillion a year ago

Abhijit Lele

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The non-performing advances (NPAs) of banks are at multi-year lows, supported by substantial write-offs, especially for state-owned banks. 

The overall loan write-offs by public sector banks (PSBs) exceeded Rs 10 trillion during the FY2017-2023 period. 

This followed the banking industry-wide asset quality review the Reserve Bank of India (RBI) initiated in FY16. The closing stock of write-off pool stood at Rs 7.5 trillion at the end of March 2023, up from Rs 6.8 trillion a year ago. 

The recoveries from this pool are expected to continue to contribute significantly to the profita­bility of PSBs even in a scenario of low recoveries.  

Topics : NPAs Banks

First Published: Jul 07 2023 | 11:26 PM IST

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