New Delhi, May 16 -- The gross non-performing assets (GNPA) ratio of small businesses has improved significantly, declining to 3.3 percent by September 2026 from 11 percent in FY20, driven by recoveries, loan upgrades and moderation in fresh slippages, according to a report by CareEdge Ratings.

The report noted, however, that the pace of improvement has slowed in recent months, indicating limited scope for further sharp declines in bad loans, reported Business Standard.

MSMEs Increasingly Export-Oriented And Credit Dependent

It said micro, small and medium enterprises (MSMEs) are becoming increasingly export-oriented and more reliant on bank funding, particularly for working capital requirements, making their asset quality more vulnera...