{"id":37704,"date":"2018-11-28T17:26:43","date_gmt":"2018-11-28T11:56:43","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=37704"},"modified":"2018-11-28T17:26:43","modified_gmt":"2018-11-28T11:56:43","slug":"npas-on-downhill-path-since-march-peak-says-rbi","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/npas-on-downhill-path-since-march-peak-says-rbi\/","title":{"rendered":"NPAs on downhill path since March peak, says RBI"},"content":{"rendered":"<p><a href=\"https:\/\/www.thehindu.com\/business\/Economy\/npas-on-downhill-path-since-march-peak-says-rbi\/article25608250.ece\">NPAs on downhill path since March peak, says RBI<\/a><\/p>\n<p><strong>News:<\/strong><\/p>\n<ol>\n<li>The RBI, in its submissions to the Standing Committee on Finance, revealed that both gross and net non-performing assets (NPAs) of scheduled commercial banks have reduced in the two consecutive quarters ending September 30, 2018 since their peak in March 2018.<\/li>\n<\/ol>\n<p><strong>Important Facts:<\/strong><\/p>\n<ol start=\"2\">\n<li><strong>Other major findings:<\/strong><\/li>\n<\/ol>\n<ul>\n<li>The annualised slippage ratio (i.e. the percentage of fresh NPAs as percentage of standard advances at the beginning of the quarter) has also witnessed a declining trend over the past two quarters, which also reflects credit discipline.<\/li>\n<li><strong>Slippage ratio: <\/strong>The percentage of fresh NPAs as percentage of standard advances at the beginning of the quarter.<\/li>\n<li>The profitability of banks continues to be impacted on account of the decline in earnings from loan assets.<\/li>\n<li>The higher provisions that are required to be maintained to reflect the deterioration in asset quality, will eventually crystallise as actual losses.<\/li>\n<li>However, the decline in NPAs, particularly fresh slippages, will reflect in the improved profitability going forward.<\/li>\n<li>The RBI said that although weak bank balance sheets had created significant headwinds for credit growth, this had still been picking up on a year-on-year basis.<\/li>\n<li>Credit growth for scheduled commercial banks stood at 5.82% in September 2017 compared with the same month in the previous year, which grew to 10.7% in September 2018.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>NPAs on downhill path since March peak, says RBI News: The RBI, in its submissions to the Standing Committee on Finance, revealed that both gross and net non-performing assets (NPAs) of scheduled commercial banks have reduced in the two consecutive quarters ending September 30, 2018 since their peak in March 2018. Important Facts: Other major&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/npas-on-downhill-path-since-march-peak-says-rbi\/\">Continue reading <span class=\"screen-reader-text\">NPAs on downhill path since March peak, says RBI<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-37704","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704901700},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/37704","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=37704"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/37704\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=37704"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=37704"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=37704"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}