Non-performing loans of Iranian banks and credit institutions were worth 1,770 trillion rials ($7 billion) by the end of the second quarter of the current fiscal year (Sept. 21), the latest data published by the Central Bank of Iran show.
Compared to the March-June quarter, the figure was 15% lower but on an annualized basis it was 4% higher, Tehran Chamber of Commerce, Industries, Mines and Agriculture said in an analytical report, citing CBI's data.
NPLs had been rising steadily over the past two years, from 1,510 trillion rials ($6 billion) in the last quarter of the fiscal 2019-20 (January-March) to a whopping 2,090 trillion rials ($8.3 billion) in the next quarter.
Hence, the pause in growth of bad loans in Q2 indicates CBI's success in accosting big loan defaulters in recent months.
February 16, 2021 20:20
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NPLs Improve on Quarterly Basis
The NPL ratio of Iranian banks is high compared to many developing and developed countries where it is mostly in single digits and usually below 5%
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