Credit card NPA increased to 18% for government banks: RBI Report

- Advertisement -

According to the Reserve Bank of India’s recent report, the percentage of bad loans (GNPAs) from credit card transactions in state-run banks has doubled to 18% by the end of the financial year 2023. This is a significant increase compared to 9% in the previous year and around 15% in September 2022. The report also highlights the central bank’s concerns about the risks associated with unsecured loans, including credit cards, personal loans, and microfinance. Overall, the banking system’s bad loans in the credit card category slightly increased to 2% in FY23.

In contrast, private sector banks and foreign banks experienced relatively stable rates of bad loans from credit cards at 1.9% and 1.8% respectively. The report also mentions that the banking system’s overall bad loans have reached a 10-year low of 3.9% at the end of FY23 and are expected to further improve to 3.6% by the end of FY24 under normal circumstances.

The Reserve Bank of India warns that high inflation and increased borrowing costs can negatively affect households’ finances and their ability to repay loans. This, in turn, can impact lending banks. The report highlights the potential risks faced by households when both inflation and lending rates increase simultaneously, which can put even financially stable households at risk and double the number of risky loans.

➡️ Join Whatsapp Group
➡️ Read more news
- Advertisement -

Share this article...

Comments

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More News...

Latest

Video: Federal Bank launches its new ‘Rishta Anthem’

Video: Federal Bank launches its new 'Rishta Anthem'

Indian Money in Swiss Banks decreases by 70%, Check how much money is still in Swiss Banks

Indian Money in Swiss Banks decreases by 70%, Check how much money is still in Swiss Banks

Gang Arrested for Rs.120 Crore Fraud from AKTU Bank Account

Gang Arrested for Rs.120 Crore Fraud from AKTU Bank Account

Rs.20,000 crore Bank Fraud, ED starts investigation

Rs.20,000 crore Bank Fraud, ED conducts Raids

Case Registered for Threatening Bank MD in Almora

Case Registered for Threatening Bank MD in Almora

ICICI Bank Manager Absconds After Duping Customers of Rs 80 Lakh

ICICI Bank Manager Absconds After Duping Customers of Rs 80 Lakh

DFS held review meeting of Gramin Banks, Check meeting highlights

DFS held review meeting on performance and upgradation of RRBs, Check meeting highlights

Case of Illegal Withdrawal of Money from Union Bank of India Branch

Case of Illegal Withdrawal of Money from Union Bank of India Branch

Bank of Baroda Employee Found Dead after Fainting on Road

Bank of Baroda Employee Found Dead Under Suspicious Circumstances

Bank of Maharashtra Fraud: Customer submitted fake property documents for Loan

Bank of Maharashtra Fraud: Customer submitted fake property documents for Loan

Latest News