The asset quality of private sector banks improved in the second quarter, primarily because of lower slippages across segments.

Data collated from Capitaline for 13 private banks showed that the average gross non-performing asset (GNPA) ratio declined 13 basis points sequentially to 2.16% as of September 30, while the average net NPA ratio eased 2 bps to 0.55%.

HDFC Bank, the country’s largest private lender, saw its GNPA ratio improve by 16 bps to 1.24% while net NPA fell 5 bps to 0.42%. “Our USP has been the asset quality. We continue to maintain a very healthy quality, and these metrics have remained range-bound for a long period,” said Sashidhar Jagdishan, MD and CEO, in the post-earnings media call.

ICICI Bank also reported a sequential improvement, with the GNPA and net NPA rati

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