New Delhi, Jun 28 (IANS): The gross non-performing assets (GNPA) ratio of banks fell to a 10-year low of 3.9 per cent in March 2023, the Reserve Bank of India (RBI) said in its financial stability report (FSR), released on Wednesday.

The net non-performing assets (NNPA) ratio declined to 1.0 per cent, the RBI report said.

The macro stress tests for credit risk reveal that scheduled commercial banks (SCBs) would be able to comply with the minimum capital requirements even under severe stress scenarios, the report emphasised.

Stress test results reveal that SCBs are well capitalised and capable of absorbing macroeconomic shocks over a one-year horizon even in the absence of any further capital infusion, it said.

"As per the stress test results, the GNPA ratio of all SCBs may improve to 3.6 per cent by March 2024," the report said.

The FSR report is a half-yearly report card of the Indian banking system. As per the report, the improvement in SCBs’ asset quality has been broad based, with a steady decline in the stressed advances ratio across all major sectors.

Also, while there has been overall improvement in asset quality in respect of personal loans, impairments in the credit card receivables segment have risen marginally, it said.