NPA Crisis

Financial Stability Report – private vs public


  1. RBI has been pushing lenders to review the classification of loans given by them as part of an Asset Quality Review (AQR)
  2. The gross NPAs of public sector banks increased to 9.6% as of March 2016, from about 6% a year earlier, mainly because of AQR
  3. The net NPAs of public sector banks was 6.1%, while the ratio for private sector banks was 4.6%, in March 2016
  4. Stark difference in the credit and deposit growth of public sector banks as compared with their private sector counterparts
  5. Loan growth: Public (4%) vs private (25%)
  6. Deposit growth: Public (5%) vs private (17%)

Leave a Reply

Please Login to comment
  Subscribe  
Notify of