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Covid-19: Bank NPAs may worsen to 11.6 per cent by FY21 end, says Icra

With an increase in stress on asset quality and profitability, state-owned banks may need Rs 45,000-82,500 crore of capital in this financial year under a weak credit growth scenario, it said

Covid-19: Bank NPAs may worsen to 11.6 per cent by FY21 end, says Icra
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The credit provisions will continue to exceed the operating profits for the public sector banks (PSBs) during 2020-21, translating in a sixth consecutive year of loss, it said

BS Web TeamPTI New Delhi
Gross non-performing assets (NPAs) of banks are likely to worsen to 11.3-11.6 per cent by the end of this financial year from 8.6 per cent as of March 2020, due to disruptions caused by the coronavirus pandemic, according to a report.
Fresh gross slippages are estimated to be at 5-5.5 per cent of standard advances during 2020-21, which will increase the banks' credit provision and impact their earnings, rating agency Icra said in a report.
With an increase in stress on asset quality and profitability, state-owned banks may need Rs 45,000-82,500 crore of capital in this financial year under a weak credit

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