CHENNAI: the Reserve Bank of India on Saturday said that the share of large borrowers for scheduled commercial banks  has declined in recent times while their share in the gross non-performing assets (GNPA) also went down.

The percentage of large borrowers -- those with total fund and non-fund based exposure of Rs. 5 crore or more -- has been dropping recently, it reads in the  RBI's Financial Stability Report, published on June 22.

This shows that borrowers are becoming more diverse and credit is becoming less concentrated. Their proportion of the overall GNPA of SCBs slightly decreased to 62.3% in the second half of 2021–2022 and remained significantly below its level in September 2020. (75.6 per cent).

The GNPA ratio for major borrowers has been decreasing over the past two years and will reach 7.7% in March 2022, RBI said.

The second half of the year saw a rebound in industrial activity, which led to an increase in the proportion of the top 100 largest borrowers in both the total loan books and the GNPA of SCBs.

According to the RBI report, these borrowers accounted for 6.9 percent of gross non-performing assets and 17.1 percent of total credit extended by SCBs.

The asset quality of SCBs reportedly continued to rise throughout the year, with the GNPA ratio falling from 7.4% in March 2021 to a six-year low of 5.9% in March 2022.

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