SYNOPSIS:
A number of banks, together with ICICI Financial institution, Federal Financial institution, Indian Financial institution, and Financial institution of India, reported improved asset high quality in Q2 FY26, with each gross and web NPA ratios declining year-on-year.
An asset is classed as non-performing when it stops producing revenue for the financial institution. Beforehand, the classification of a non-performing asset (NPA) was primarily based on the ‘overdue’ idea, the place a mortgage was thought of an NPA if the curiosity or principal fee remained overdue for a specified interval.
If a borrower, whether or not particular person or company, fails to repay curiosity or principal, the mortgage not earns revenue for the financial institution and is handled as non-performing. To standardise this, the Reserve Financial institution of India (RBI) defines NPAs as loans or advances the place funds are overdue and not usher in income for the lender.
Following are just a few financial institution shares which have proven a decline of their non-performing property (NPA) ratio in Q2 FY26:
With a market cap of Rs. 9,82,711 crores, the inventory surged almost 1.03 p.c on BSE, rising to Rs. 1,377.80 on Friday. On the monetary entrance, the financial institution’s web curiosity revenue (NII) surged by round 9 p.c YoY to Rs. 26,163.5 crores, whereas the web revenue elevated marginally by almost 3 p.c YoY to Rs. 14,318 crores in Q1 FY26.
ICICI Financial institution reported a year-on-year decline in asset high quality ratios, with gross non-performing property (GNPA) falling from 1.97 p.c in Q2 FY25 to 1.58 p.c in Q2 FY26. Web non-performing property (NNPA) additionally improved, declining from 0.42 p.c to 0.39 p.c over the identical interval.
With a market cap of Rs. 56,802 crores, the inventory surged almost 1.9 p.c on BSE, rising to Rs. 232.20 on Friday. On the monetary entrance, the financial institution’s web curiosity revenue (NII) surged by over 5 p.c YoY to Rs. 2,495 crores, whereas the web revenue decreased by almost 8 p.c YoY to Rs. 1,019.4 crores in Q1 FY26.
Federal Financial institution reported a year-on-year decline in asset high quality ratios, with gross non-performing property (GNPA) falling from 2.09 p.c in Q2 FY25 to 1.83 p.c in Q2 FY26. Web non-performing property (NNPA) additionally improved, declining from 0.57 p.c to 0.48 p.c over the identical interval.
With a market cap of Rs. 1,12,013 crores, the inventory surged almost 3.2 p.c on BSE, rising to Rs. 852.85 on Friday. On the monetary entrance, the financial institution’s web curiosity revenue (NII) surged by round 6 p.c YoY to Rs. 6,588.6 crores, whereas the web revenue elevated by almost 11 p.c YoY to Rs. 3,040.5 crores in Q1 FY26.
Indian Financial institution reported a year-on-year decline in asset high quality ratios, with gross non-performing property (GNPA) falling from 3.48 p.c in Q2 FY25 to 2.6 p.c in Q2 FY26. Web non-performing property (NNPA) additionally improved, declining from 0.27 p.c to 0.16 p.c over the identical interval.
With a market cap of Rs. 61,529 crores, the inventory fell almost 0.82 p.c on BSE, falling to Rs. 134.41 on Friday. On the monetary entrance, the financial institution’s web curiosity revenue (NII) declined by round 1.2 p.c YoY to Rs. 5,992 crores, whereas the web revenue elevated by over 5 p.c YoY to Rs. 2,525.6 crores in Q1 FY26.
Financial institution of India reported a year-on-year decline in asset high quality ratios, with gross non-performing property (GNPA) falling from 4.41 p.c in Q2 FY25 to 2.54 p.c in Q2 FY26. Web non-performing property (NNPA) additionally improved, declining from 0.94 p.c to 0.65 p.c over the identical interval.
Written by Shivani Singh
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