[INDIAN ECONOMIC NEWS] Good morning, everyone. I’m Kim suhyeon staff of Kamagroup Pvt. Ltd. Here I have an important Indian economic news to share with you which is as undermentioned.
MUMBAI: Fresh NPAs in the banking sector are expected to moderate to 1.9 to 2.4 perc ent in FY'20, due to aggressive recovery drive and write offs by banks according to ratings firm Icra. Public sector banks are expected to turn profita ble after four consecutive years of losses.
Capital infusion by the government too will help. The ratings firm has revised the outlook of six public sector banks of which five are positive revisions.
Fresh NPA generation expected to be 1.9-2.4% for FY20 as compared to an estimated 3.7% for FY19 Adjusted for recoveries, upgrades and write-down, Icra expects gross NPAs of the banking sector to 8.3 lakh crore or 7.9 per cent for March 2020, as compared to estimated 9.2 per cent as of March 2019. With capital infusion of Rs 50,000 crore during the December quarter, net NPAs are expected to fall further.
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