NPA has been the buzzword for the Indian banking industry this year. Fraud was the second word related to this industry which is trending.
NPA of Indian banks is at an all-time high. The amount is now standing at a whopping 8,5,000 crores. Of this 90 percent is of PSU banks and rest is of Private banks.
PSU banks constitute 70% of the total banking industry and hence government might have to face a massive cash crunch in case this figure increases.
Out of the 10 % which is of private banks roughly 50% belongs to the troubled ICICI Bank.
NPA account for roughly 10 percent of the banking money in circulation. Many experts predict that this figure will decrease/ stabilize by mid of 2019 mainly because of RBI’s rule to identify and report the stressed assets early and work on a plan to resolve them.