Indian bank GNPAs projected to improve to 2.1-2.4% by FY25 due to lower credit costs, corporate deleveraging, and reduced retail slippage.

GNPAs (gross non-performing assets) of Indian banks are projected to improve to 2.1-2.4% by the end of FY25, according to CareEdge Ratings. The improvement is attributed to lower incremental credit costs, corporate deleveraging, and reduced retail slippage. The GNPA ratio of SCBs is expected to decrease from 2.5-2.7% in FY24. However, risks such as elevated interest rates, regulatory changes, and global issues may impact the GNPA levels.

March 29, 2024
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