Banks asset quality remains monitorable despite lower increase in NPAs: ICRA ANI | Updated: Apr 06, 2021 15:06 IST
Even including pro-forma GNPAs of Rs 1.3 lakh crore (1.1 per cent of gross advances) and NNPAs of Rs 1 lakh crore (1 per cent of net advances), the GNPA and NNPA of banks stood at 8.3 per cent and 2.7 per cent as on December 31, 2020 as compared to 8.6 per cent and 3 per cent respectively as on March 31, 2020.
However, this decline was driven by loan write-offs of Rs 1.1 lakh crore (1 per cent of advances) during 9M FY21.
Further, based on the restructuring guidance given by various banks, the overall volume of restructured advances is estimated at 1.3 to 1.5 per cent of the advances, much lower than ICRA s initial estimates.