Small finance banks' asset quality to improve, GNPA to drop by 120 basis points by March 2027: Crisil
retained text
Their GNPAs stood at 3.8% and 4.4% at March-end this year and last year, respectively. Read more: Small finance banks' asset quality to improve, GNPA to fall by March 2027: Crisil Ratings Crisil Ratings said the improvement would be driven by a recovery in the credit performance of the microfinance portfolio, alongside continued growth and increasing contribution from the non-microfinance portfolio, where asset quality is expected to remain stable. "Tighter underwriting by SFBs (small finance banks) has improved borrower selection, materially strengthening the asset quality of microfinance portfolios," said Aparna Kirubakaran, director, Crisil Ratings. Read more: Need stronger governance, internal controls in urban cooperative banks: RBI Deputy Guv Gross NPAs from the microfinance book are likely to ease to 3.8-4% by March 2027 from 7.6% at the end of 2025-26, after having declined from a peak of 8.4% recorded a year earlier, according to the rating agency. Borrower over-indebtedness caused significant credit stress in the microfinance portfolio during the past two fiscals. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
document fetched 2026-09-03 03:00