Bank GNPA to rise to 8-9% in current year
Banks are likely to see a rise in gross non-performing assets (GNPAs) in the range of eight per cent to nine per cent in 2021-22 as compared to 7.5 per cent in 2020-21, CRISIL stated in a report. The increase in GNPA will be led by retail and micro, small and medium enterprise (MSME) segments, which represent 40 per cent of total bank credit. CRISIL further stated that it expects corporate stressed assets to remain at 9-10 per cent in the current fiscal. Covid-19 relief measures such as restructuring dispensation and Emergency Credit Line Guarantee Scheme will help limit the increase in banks’ gross NPAs, it added.