GNPAs to improve to decadal low in FY25; MFI loans, unsecured need to be watched: Crisil

According to a recent report by CRISIL, gross non-performing assets (GNPAs) in the banking sector are projected to improve to a decadal low in FY25. The report indicates a significant reduction in stressed assets, driven by robust economic recovery and effective risk management practices adopted by lenders. However, it cautions that microfinance institutions (MFIs) and unsecured loans require close monitoring, as they still pose potential risks to financial stability. The report highlights the importance of proactive measures by banks to manage their portfolios and address any emerging challenges in the lending landscape.