Private sector banks notably witnessed a rise in non-performing assets (NPA) in respect of large borrowal accounts with exposure of Rs five crore or above.

A recent report by the Reserve Bank of India (RBI), cited that the gross NPA ratio, as well as the ratio of restructured standard assets to total funded amounts emanating from larger borrowal accounts in the public sector banks, have gone down. At the end of September 2020, large borrowal accounts constituted 79.8 percent of NPAs and 53.7 percent of total loans, it said. "During 2019-20, PSBs' GNPA ratio, as well as the ratio of restructured standard assets to total funded amounts emanating from larger borrowal accounts, trended downwards.

On the contrary, PVBs experienced an increasing share of NPAs in respect of such accounts," it said. Further, the share of special mention accounts (SMA-0) witnessed a sharp rise in September 2020, which, according to the report, may be an initial sign of stress after lifting of the moratorium on August 31, 2020. However, the share of other categories of SMAs i.e., SMA-1 and SMA-2 remained at a relatively lower level, it said.

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