India bank's NPA to rise to 11-12% in FY22: S&P

The RBI's Financial Stability report has projected that scheduled commercial banks’ GNPA ratio may increase to 13.5% by September from 7.5% a year ago, under the baseline scenario. (Photo: Mint)

2 min read . 30 Jun 2021Gopika Gopakumar

MUMBAI: Stressed assets of Indian banks will remain elevated at 11-12% in fiscal 2022, S&P Global Ratings said on Wednesday. The agency expects non-performing loans plus restructured assets to increase to 11.5% in the current fiscal from 8.7% a year ago. It also expects banks’ performance to be affected in the first half of the fiscal due to the impact of the second wave.

"The second wave has front-ended weakness in asset quality. Financial institutions face a strained first half amid weak collections and poor disbursements," said S&P Global Ratings credit analyst Deepali Seth Chhabria.