The banking rate, which saw some improvement in the second half of 2020, is likely to be worse in the first six months of 2021, the study said.
These findings form part of the 12th round of bank research conducted by FICCI-IBA between July and December 2020. The survey was conducted on 20 banks, including state-owned companies, private companies and foreign banks.
In the current survey cycle, half of the responding banks reported a decline in NPAs during the second half of 2020. About 78% of state-owned banks reported a decline in NPA rates.
“However, by looking at it, about 68% of responding banks expect NPA rates to be more than 10% by the first half of 2021,” the study said. About 37% of respondents expect NPA levels to be higher than 12%.