Tag: icra

The gross non-performing assets (NPAs) of Indian banking systems are estimated to decline to 5.6-5.7 percent by March 2023 from 6.2-6.3 percent in March 2022, according to ICRA. Thus the asset quality of the Indian banking system is set to improve further. The NPAs will decline to 1.7-1.8 percent by end of the current financial year (FY23) as against an estimate of 2 percent by March 2022. However, the rating agency added a caveat saying the performance of restructured loan book poses uncertainty to asset quality. The Russia-Ukraine conflict poses macro-economic challenges related to cost inflation, higher interest rates, and exchange rate volatility, which could pressurise asset quality, it added. The credit and other provisions are estimated to dip to 1.3-1.4 percent of advances in FY23 as against an estimated 1.7-1.8 percent in FY22, said Anil Gupta, vice president, ICRA. Read more

Gross NPAs of banks are likely to worsen to 11.3-11.6 percent by the end of this financial year from 8.6 percent as of March 2020, due to disruptions caused by the coronavirus pandemic, according to a report. Fresh gross slippages are estimated to be at 5-5.5 percent of standard advances during 2020-21, which will increase the banks' credit provision and impact their earnings, rating agency Icra said in a report. With an increase in stress on asset quality and profitability, state-owned banks may need Rs 45,000-82,500 crore of capital in this financial year under a weak credit growth scenario, it said. Read more