According to the estimates of Assocham-Crisil, there may be a decline in NPAs this year. He told that there is a possibility of 0.90% reduction in bad loans (NPA) of Indian banks in the year 2022-23.
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Non Performing Assets: Whenever it comes to the loss of banks, one word is often used. that is ‘NPA’ ie non performing asset Means bad debt. Simply put, after taking the loan, when on time lender If you are not able to pay the installment, then the bank’s money gets stuck and it is called non-performing asset. of Indian banks bad debt (NPA) is likely to come down by 0.90% in the year 2022-23.
This year the NPA will come down to less than five percent. ASSOCHAM-CRISIL According to the estimates, there may be a decline in NPA this year. According to the report of Assocham-Crisil, the gross NPA of banks can come down to the lowest level of 10 years i.e. less than four percent by March 31, 2024. According to the Crisil-Assocham study, the post-Covid economic recovery and higher credit growth have been attributed to the decline in NPAs.
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Maximum improvement in corporate loan
The Crisil-Assocham study said that the biggest improvement is expected in the corporate loan segment. Gross NPAs in the corporate loan segment stood at around 16% as on March 31, 2018. At the same time, it is expected to come down to two per cent in the next financial year. According to Deepak Sood, General Secretary, Assocham, “This recent period reflects the good account management, strong risk management and underwriting by banks in recent years, due to which loans have been given to those with good credit scores.”
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MSME segment may increase
According to Crisil-Assocham, the problem of double ledger account has been rectified to a large extent. Much improvement has been seen in such loans. Sood said, “Our banking sector is very strong even in the midst of ongoing challenges worldwide.” It was said in the study that the sector which has been affected the most during Corona is the MSME segment. In this, the gross NPA is estimated to increase to 10-11% by March 2024. As of March 31, 2022, its NPA was approximately 9.3%.