After two years of decline, gross fresh non-performing asset (NPA) generation is set to rise for both private and public sector banks (PSBS) in FY25, according to a report by ICRA on Wednesday.
The rating agency also revised downwards its outlook for the Indian banking sector to "stable" from "positive" for FY25.
This is on the expectation of moderation in credit growth and profitability metrics.
The estimated fresh NPA generation rate for public sector banks is expected to rise to 1.5 per cent in FY25 from an estimated 1.3 per cent in FY24.
For private banks, it is likely to rise to 2.2 per cent in FY25 from an estimated 2 per cent in FY24.
"The moderation in credit growth also leads to inching up of slippages.
This story is from the April 11, 2024 edition of Business Standard.
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This story is from the April 11, 2024 edition of Business Standard.
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