Fitch sees banks’ NPA ratio improving to 10.9% by March-end – Feedback

International ratings agency Fitch today said the non-performing assets ratio of banks is likely to improve marginally to 10.9 per cent by the end of this fiscal. “We expect banks’ stressed assets ratio to improve marginally to 10.9 per cent in 2015-16 from 11.1 per cent in 2014-15, although there is still some time before absolute NPAs witness a reversal,” Fitch’s Director for Financial Institutions Saswata Guha told reporters here.

According to the agency, the system currently has stressed assets of around Rs 9 trillion. “We will see some more NPAs in the coming quarter, as the system is trying to catch up with some legacy problems,” he said, adding that new NPA generation has started to slow down at many banks and there could be greater traction with cyclical recovery.

http://economictimes.indiatimes.com/industry/banking/finance/finance/fitch-sees-banks-npa-ratio-improving-to-10-9-by-march-end/articleshow/51347620.cms

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