Gross NPAs of private sector banks have gone up 40.8% on a yoy basis as of 30 September 2017, according to the Financial Stability Report of the Reserve Bank of India. The gross NPAs at public sector banks rose by 17% over the corresponding period. The gross NPA ratio of the banking sector as whole increased to 10.2% in September, from 9.6% in March, while net NPA ratio rose to 5.7%, from 5.5%. The total net NPA ratio of private sector banks stood at 2%, which is lower than the 5.7% for PSBs. The report said the slippage ratio of the 27 banks (accounting for about 87% of the total assets of the banking system) – the median as well as the tails – were showing signs of moderation. But, banks needed to increase their provision coverage ratio, it added.
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