Public and Private Sector Banks Witness Steep Fall in Restructured Assets

Significant Reduction Observed in Restructured Assets of Selected Banks

According to data retrieved from our sources, by the end of December 31, 2023, a select group of 10 prominent Public Sector Banks (PSBs) observed a year-on-year reduction in restructured assets by a whopping 16.6%. The total restructured assets for this group stood at Rs. 0.97 lakh crore.

Private Banks Also Register Large Reductions in Restructured Assets

In a similar fashion, a collection of five distinct private banks also reported considerable declines in their restructured assets. Clocking in at a reduction rate of 37.6%, their restructured assets fell to a total of Rs. 0.11 lakh crore.

Key Factors Attributed to The Decline

• The significant decrease in the quantity of restructured assets is largely associated with the action of borrowers making repayments.
• Improvements in economic activities have also played a crucial role in this reduction.
• The transition of some accounts into Non-Performing Assets (NPAs) also contributed to the reduction.

Overall Reduction in Restructured Assets

An overall inspection of the data reveals that the total restructured assets of these fifteen banks (comprising of the aforementioned ten PSBs and five PVBs) represented a relatively minor 0.8% of net advances as of the stated date. This scenario marks a decrease of approximately 50 basis points from the data obtained from the previous year.