INSUBCONTINENT EXCLUSIVE:
Mumbai: Delays in recognition of non-performing assets (NPA) and the lack of timely allocation of provisions on these bad loans can impact
central bank said in a report published Tuesday
After seeing seven consecutive years of rising bad loans, the banking sector in FY19 posted a decline in consolidated bad loans, the report
The gross NPA ratio in the fiscal year 2018-19 came in at 9.1% as against 11.2% in the year-ago period, while net NPA nearly halved to
3.7%.
Separately, the provision coverage ratio (PCR) of all scheduled commercial banks improved to 61% by September 2019, RBI said, on the
back of declining NPAs at the public-sector banks
exercise undertaken by the central bank in 2015 and the subsequent implementation of the framework for resolution of stressed assets in
February 2018.
The framework that had made it mandatory for banks to identify signs of incipient stress in loan accounts and classify these
assets as Special Mention Account, immediately on default, was revised in June 2019 to provide banks a window to resolve these toxic
