According to the latest FSR report, which is a half-yearly publication put out by the RBI, the net NPA ratio—the proportion of net non-performing assets in net loans—was at 0.6%.
Notably, the report says fresh accretion of NPAs in the retail loan portfolios was dominated by slippages in the unsecured loan book, at 51.9% as of September 2024.
The report also notes that the banking system’s liquidity coverage ratio declined from 135.7% in September 2023 to 128.5% in September 2024, driven by an increase in net cash outflows, which, in turn, is influenced by a rise in less stable sources of funding.
Meanwhile, the share of large borrowers in GNPA has steadily declined over the past two years. And, the asset quality of large borrower portfolios improved considerably, it says.