A majority of the 23 banks surveyed within the newest version of FICCI-IBA Banjers’ Survey count on their gross non performing property (NPAs) as a share of advances to vary between 3-3.5 per cent in subsequent six months.
Respondent banks have been extra sanguine concerning the asset high quality prospects within the present spherical of the survey, cushioned by coverage and regulatory assist and this was mirrored within the survey outcomes, in keeping with business chamber FICCI.
The eighteenth spherical of the FICCI-IBA Bankers’ survey was carried out for the interval July to December 2023.
It possibly recalled Indian banks had achieved a brand new decadal low within the gross non-performing asset ratio to three.2 per cent as of September 2023, following a decline from 3.9 per cent on the finish of March 2023, as per the RBI Monetary Stability Report.
Over half of the respondent banks within the present spherical imagine that Gross NPAs could be within the vary of three– 3.5 per cent over the subsequent six months. About 14 per cent respondents are of the view that NPA ranges could be within the vary of two.5 – 3 per cent.
NPA danger
There was a combined response with respect to sectors recognized with excessive NPA danger over the subsequent six months, by collaborating bankers within the present spherical of survey.
Over half the respondent banks count on NPAs within the Textile and Clothes sector to extend within the subsequent 6 months whereas 43 % of the respondents count on NPA danger to stay unchanged within the subsequent six months.
MSME was reported as one other excessive NPA danger sector by collaborating bankers. About 38 % respondents count on NPAs to extend on this sector within the subsequent 6 months whereas 33 per cent of the respondents count on NPA danger to stay unchanged within the subsequent six months.
About 33 % respondents count on NPAs within the Agriculture sector to extend within the subsequent six months, a rise in comparison with the earlier spherical the place 29 per cent of the respondents cited Agriculture to pose increased NPA danger.
Twenty-three Banks responded to the survey, representing a mixture of public sector, non-public sector and international banks. Collectively, these banks represent about 77 per cent of the whole banking asset measurement.
Credit score Demand
The survey findings present that long run credit score demand has seen continued progress for sectors resembling Infrastructure, Metals, Iron and Metal, Meals Processing. Infrastructure is witnessing a rise in
credit score move with 82 per cent of the respondents indicating a rise in long run loans as towards 67 per cent within the earlier spherical. The survey means that the outlook for non-food business credit score over subsequent six months is optimistic with 41 per cent of the collaborating banks anticipating non-food business credit score progress to be above 12 per cent whereas 18 per cent really feel that non-food business credit score progress could be within the vary of 10-12 per cent. About 36 % of the respondents are of the view that non-food business credit score progress could be within the vary of 8-10 per cent.