Respondent banks had been extra sanguine concerning the asset high quality prospects within the present spherical of the survey, cushioned by coverage and regulatory assist and this was mirrored within the survey outcomes, in response to business chamber FICCI.
The eighteenth spherical of the FICCI-IBA Bankers’ survey was carried out for the interval July to December 2023.
It possibly recalled Indian banks had achieved a brand new decadal low within the gross non-performing asset ratio to three.2 per cent as of September 2023, following a decline from 3.9 per cent on the finish of March 2023, as per the RBI Monetary Stability Report.
Over half of the respondent banks within the present spherical consider that Gross NPAs can be within the vary of three– 3.5 per cent over the following six months. About 14 per cent respondents are of the view that NPA ranges can be within the vary of two.5 – 3 per cent.
NPA threat
There was a combined response with respect to sectors recognized with excessive NPA threat over the following six months, by collaborating bankers within the present spherical of survey.
Over half the respondent banks count on NPAs within the Textile and Clothes sector to extend within the subsequent 6 months whereas 43 p.c of the respondents count on NPA threat to stay unchanged within the subsequent six months.
MSME was reported as one other excessive NPA threat sector by collaborating bankers. About 38 p.c respondents count on NPAs to extend on this sector within the subsequent 6 months whereas 33 per cent of the respondents count on NPA threat to stay unchanged within the subsequent six months.
About 33 p.c respondents count on NPAs within the Agriculture sector to extend within the subsequent six months, a rise in comparison with the earlier spherical the place 29 per cent of the respondents cited Agriculture to pose larger NPA threat.
Twenty-three Banks responded to the survey, representing a mixture of public sector, personal sector and overseas banks. Collectively, these banks represent about 77 per cent of the entire banking asset dimension.
Credit score Demand
The survey findings present that long run credit score demand has seen continued development for sectors comparable to Infrastructure, Metals, Iron and Metal, Meals Processing. Infrastructure is witnessing a rise in
credit score movement with 82 per cent of the respondents indicating a rise in long run loans as in opposition to 67 per cent within the earlier spherical. The survey means that the outlook for non-food business credit score over subsequent six months is optimistic with 41 per cent of the collaborating banks anticipating non-food business credit score development to be above 12 per cent whereas 18 per cent really feel that non-food business credit score development can be within the vary of 10-12 per cent. About 36 p.c of the respondents are of the view that non-food business credit score development can be within the vary of 8-10 per cent.
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