The gross non-performing assets (NPAs) ratio — bad loans as a percentage of total loans — of the Indian banking system could reach 12.2% by March 2019, the Reserve Bank of India (RBI) said in its financial stability report (FSR) on Tuesday. The gross NPA ratio of all banks rose from 10.2% in September 2017 to 11.6% in March 2018. Among the bank groups, the gross NPA ratio for public sector banks (PSBs) may increase from 15.6% in March 2018 to 17.3% by March 2019 in a scenario where the stress was severe. For private banks, the ratio could to 5.3%, the central bank observed while for foreign banks’ it could increase to 4.8% by March 2019.

(Financial Express)