Bank loans worth ₹5-lakh cr turned into NPAs in FY18: Crisil

MUMBAI, JUNE 5

As much as ₹5-lakh crore of bank loans deteriorated into the non-performing asset (NPA) category in fiscal 2018, according to credit rating agency Crisil.

But the tide seems to be turning, given the sharp reduction in SMA (special mention account)-2 cases and better NPA recovery prospects, it added. An SMA-2 account is a stressed account where the principal or interest payment or any other amount, wholly or partly, is overdue between 61 and 90 days.

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Crisil said the total slippages in the past three fiscals amounted to ₹13.6-lakh crore.

It assessed that about a fifth of the slippages last fiscal (FY2018) was due to the withdrawal of various structuring schemes by the RBI in February 2018 after the Insolvency and Bankruptcy Code (IBC) process came into force.

As a result, gross NPAs increased to about ₹10.3-lakh crore, or about 11.2 per cent of advances, as on March 31, 2018, compared with ₹8-lakh crore, or about 9.5 per cent of advances, as on March 31, 2017.
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Bank loans worth ₹5-lakh cr turned into NPAs in FY18: Crisil