Bad loan respite for 30 banks, GNPA declines by Rs 103 bn in 2 quarters

Asset quality is on the mend for banks.  In two consecutive quarters, gross non-performing assets of banks have declined, in the second quarter 2018-19 by Rs 103 billion for 30 banks that have announced their results. 

However, the extent of the decline was small compared to Rs 173 billion in the first quarter ended June 2018 for the 30 banks, according to BS Research analysis. 

Bankers said the asset quality cycle had turned for better, reflecting the effect of repayments after a rigorous follow up, a one-time settlement and sales of loan parcels to asset reconstruction companies (ARCs).