FY21 was a stressful year for lenders. Yet some private and public banks improved their asset quality by lowering net non-performing assets (NPAs). 

Among Nifty Bank companies, State Bank of India's (SBI) saw NPAs drop the most to 1.5% of advances in FY21 (from 2.2% in FY20), a 13-year low for India's largest public sector bank. Axis Bank, the fourth largest private bank, lowered net NPAs to 1.1% in FY21 (from 1.6% in FY20). However, Bandhan Bank and Au Small Finance Bank's net NPAs rose by 290 and 137 basis points respectively, as SME and agricultural loans remained under stress.