RBI report: Banks’ gross NPAs slump to 12-year low, credit card dues rise to 55%
New Delhi| The reduction in loan defaults has reduced banks’ gross NPA (bad bad loans) ratio to a 12-year low of 2.6 per cent in September this year compared to a year ago. Despite this, bad bad debt remains highest in agriculture at 6.2 per cent. Credit card arrears in the personal loan category have increased by up to 55.3 per cent.
According to the Financial Stability Report of the Reserve Bank of India (RBI) released, after agriculture, gross NPA in the industry stood at 2.9 percent, in service at 2.5 percent and in the personal loan sector at 1.2 percent in September. However, the gross NPAs of all these sectors have declined compared to a year ago.
The report indicates that credit card arrears in all scheduled commercial banks (SCBs) stood at 21.9 per cent in September. It was highest among public sector banks at 55.3 per cent, private banks at 21.3 per cent and foreign banks at 23.1 per cent. Residential loans increased by 14.8, auto loans by 15.9 and education loans by 42.6 per cent.
Personal loan arrears on those earning Rs 5 lakh to Rs 15 lakh annually increased to 37% in September, the highest. In September, 2021, it was 26 percent. Personal loan arrears to the income group of more than Rs 15 lakh increased from 16 to 25 per cent. The arrears on people earning less than Rs 5 lakh have increased by one per cent to 18 per cent.
