Decline in NPL Ratio

The ratio of non-performing loans to total loans by Iranian banks was 8.5% by end of the third quarter of the last fiscal year (Dec. 2020).
It was a slight improvement compared to the 8.7% reported for Q2 and down from the 10.5% in the same quarter a year earlier, indicating a 16.7% annual decline.
The figure declined 5.6% in nine months since the beginning of the fiscal year in March 2020, according to data released on the Central Bank of Iran.
NPL ratio is the ratio of the amount of nonperforming loans in a loan portfolio of banks to the total amount of outstanding loans the banks hold. The ratio measures the effectiveness of a bank in receiving repayments on its loans.