According to the Reserve Bank of India (RBI) data, the gross non-performing assets (GNPAs) of scheduled commercial banks (SCBs) declined to 4.5 percent in December 2022 from 6.5 percent a year ago. According to RBI rules, a loan is classified as NPA if there is no repayment of principal or interest for a period of 90 days. Banks have to set aside money, called provisions, against such loans. This impacts their profitability.