Forecast: Bank Nonperforming Loans to Total Gross Loans in India

The ratio of nonperforming loans (NPLs) to total gross loans in India stood at 9.01 units in 2023. The data indicates a fluctuating trend with a significant rise between 2013 and 2017, peaking at 9.98 units in 2017, followed by a gradual decline to 6.54 units in 2021. Recent years have shown an upward movement, with a forecasted slight decrease to 8.75 units by 2028. The year-on-year change for 2023 was a 0.78% increase compared to 2022, and the annual average variation over the last five years is -0.42%. The forecasted five-year growth rate stands at -2.07%, indicating a marginal improvement in loan quality over time.

Future trends to watch include the potential impact of new regulatory measures, shifts in economic conditions, and technological advancements in risk assessment that may affect the NPL ratio. Additionally, external factors such as global economic health and geopolitical developments could significantly influence the trend of nonperforming loans.