Bank NPA Rise: Having a bank account is a common thing nowadays, everyone from child to elderly has one or the other account in the bank. Now whether it will be a government bank or a private bank, it completely depends on the consumer and his needs. But do you know whether your bank is safe or not? If you don’t know then after reading this report you are going to be shocked.

Private banks hit by ‘bad loans’
According to the report of rating agency ICRA (Investment Information and Credit Rating Agency of India Limited), the pace of increase in ‘bad loans’ (NPAs) in private banks is more than that in government banks. New bad loans of private banks may reach around 2.0% in FY27 (FY2027), which was 1.8% in FY2026. Whereas in government banks it is estimated to be around 1.2%, which was 0.9% in the financial year 2026. That means government banks are safer than private banks.

What is ‘bad loan’
For those who do not know, let us tell you that ‘Bad Loan’ is also called NPA (Non Performing Asset). This is a loan in which the bank gives the loan to the consumer but is not able to recover it. After giving the loan, the bank fixes a fixed installment, which the consumer has to pay every month. But when the consumer is not able to repay this installment, then this loan comes in the category of ‘bad loan’. However, the customer gets 90 days (three months) time for this.

Private banks give loans without guarantee
Let us tell you that private banks provide unsecured and MSME loans. Because of this, the risk of them turning into ‘bad loans’ increases. Especially when this loan is given to small traders and in the form of personal loan, then the risk of it sinking remains high. If any business sinks or there is any small impact on the business, the traders are not able to repay it.