MUMBAI : India’s banking system has weathered the economic shock from the covid pandemic well so far, but there is some lagged impact on the way, Economic Survey 2021-22 said.
Gross non-performing assets ratio (GNPA) of banks declined to 6.9% at the end of September 2021 from 11.2% at the end of FY18, while net non-performing advances (NNPA) ratio declined to 2.2% from 6% during the same period.
The stressed advances ratio of banks, however, rose to 8.5% at the end of September 2021 from 7.9% at the end of September 2020. “Various covid-19 related dispensations/moratoriums provided with respect to asset quality contributed to the increase in restructured assets and as a result, stressed advances ratio for the banking system increased at end-September 2021.
Overall, the banking system appears to have weathered the pandemic shock well, even if there is some lagged impact still in the pipeline," the survey said.