bank’s NPA report:
The onset of new Non-Performing Asset (NPA) generation is expected to gradually increase but remain under control throughout the Financial Year 2025, while headline asset quality metrics are projected to continue declining.
The ICRA report provided a distinct analysis regarding Gross NPAs (GNPAs) and Net NPAs (NNPAs) for both public and private banks. According to the report, GNPAs for public banks are projected to decrease to approximately 2.3% by March 2025, marking the lowest level since June 2012. Similarly, NNPAs are expected to decline to around 0.6% by March 2025, the lowest since June 2009.
The agency noted that the RBI is scheduled to implement the expected credit loss-based provision system starting April 1, 2025. However, it highlighted that two banks with lower levels of capital buffers are adequately positioned to adapt to this change.
In terms of capital buffers, the system is currently deemed well-prepared, the agency remarked.
Gupta remarked that if market expectations regarding the ruling BJP retaining power materialize, there could be an uptick in corporate credit growth. This would likely stem from a larger number of companies being encouraged to invest due to policy stability. Additionally, Gupta mentioned that progress on bank privatization is expected to proceed once the IDBI Bank sale is finalized.
