Winning Bizness Desk

Mumbai. With the passage of time, continuous improvement is being seen in the Indian banking sector and it seems that good days are about to come. Especially on the bad loan front, banks are continuously getting a sigh of relief. Data shows that bad loans have declined for the 5th consecutive quarter due to consistent loan collections and improvement in asset quality, which is a good sign for all. Analyzing the data of 29 banks, it has been found that the annual bad loans declined by 42.5 per cent to Rs 18,354.4 crore, which is the lowest since the March 2019 quarter. The decline in bad loans has been the fastest in the last one year. From March 2022 to March 2023, there was a decline of 51.6 percent.

29 banks were analyzed

CareAge Debt Quality Index, which monitors the health of the credit market, has taken a data sample of 29 banks and analyzed it. According to CDQI's analysis, there has been a continuous improvement in asset quality every month for eight months till March 2023. The CDQI increased to 93.5 in March 2023 from 89.8 two years ago. If compared with the March quarter of the last financial year, then out of the total sample banks, bad loans of 20 banks or 2 banks have decreased continuously. On the other hand, the name of some private banks is less in the March quarter because there has been an increase in bad loans of some banks.

Loans of private sector banks also went down

If we talk about the bad loans of private sector banks, then the bad loans of the sample banks have decreased by 59 percent on an annual basis, which is Rs 3097 crore and about 17 percent of the decline in the bad loans of the total sample banks. At the same time, the decline in bad loans of public sector banks was seen by more than 37 percent, which was Rs 15,257.4 crore. The net interest income of the sample banks taken by Care Edge has seen an increase for the fifth consecutive quarter. It increased by 28.9 percent to Rs 1.8 lakh crore in the March 2023 quarter. In which the share of public sector banks is 55.5 per cent, which was seen at 52.8 per cent in the previous quarter.