The bad assets problem of the banking sector in the country is receding for the first time since 2015, according to the bi-annual financial stability report (FSR) for December, published by the Reserve Bank of India (RBI) on Monday. But, the non-performing assets (NPAs) are still too high for comfort.
The banks showed an overall improvement with their gross NPA (GNPA) ratio declining from 11.5 per cent in March 2018 to 10.8 per cent in September 2018. However, stress was still on the rise in mining, food processing, and the construction sectors.
“The banking sector appears to be