While the asset quality of banks remained stable in September 2019 as compared to March 2019 with gross NPAs at 9.3 per cent, however, the FSR report of the RBI says that the bad loans
may rise in the coming months and reach 9.9 per cent by September 2020. While the GNPA ratio remained unchanged at 9.3 per cent between March and September 2019, the provision coverage ratio (PCR) of all banks rose to 61.5 per cent in September 2019 from 60.5 per cent in March 2019, implying increased resilience of the banking sector.
The asset quality of agriculture and services sectors deteriorated in September 2019 as compared to March 2019, though slippages in the industrial sector declined during this period. Among the sub-sectors within industry, the slippage ratios of textiles, rubber and construction industries increased during the period.
StatsGuru is a weekly feature. Every Monday, Business Standard guides you through the numbers you need to know to make sense of the headlines; Source: Financial Stability Report December 2019, RBI