None of the top 100 borrower accounts in NPA category for scheduled commercial banks: RBI report

None of the top 100 borrower accounts were in the NPA (non-performing asset) category for scheduled commercial banks (SCBs) as at end September 2023, according to RBI’s latest Financial Stability Report.

The share of top 100 borrowers, which was rising for two years until March 2023, in SCBs’ loans witnessed a moderation.

As per latest RBI data, their share has declined to 15.9 in SCBs’ loans as at September-end 2023 from 17.2 per cent as at March-end 2023.

In the large borrower accounts, the proportion of standard assets to total funded amount outstanding has been improving over the past three years, RBI said.

As per latest RBI data, GNPA ratio of large borrowers declined to 3.8 per cent as at September-end 2023 from 4.5 per cent as at March-end 2023.

A large borrower is defined as one who has aggregate fund-based and non-fund-based exposure of ₹5 crore and above.

Better asset quality

“With retail loan growth outpacing borrowings by large borrowers, the share of the latter in gross advances of SCBs has declined further between March 2020 and September 2023.

“Asset quality in the large borrower portfolio saw significant improvement, which contributed to lowering of the share of large borrowers in GNPAs of SCBs,” RBI said.

The share of large borrowers in SCBs’ loans declined to 44.5 per cent as at September-end 2023 from 46.4 per cent as at March-end 2023.

The share of large borrowers in SCBs’ GNPAs declined to 51.8 per cent from 53.9 per cent.

In terms of value, investment grade advances (rated BBB and above) constituted 90.3 per cent of total externally rated funded advances of large borrowers.