The apex court also vacated the stay on recognition of new bad loans after August 31, 2020, meaning that banks and non-bank lenders could now see their asset quality ratios worsen. According to Icra's estimates, on a proforma basis, the gross non-performing assets (GNPAs) of banks stood at Rs 8.7 lakh crore, or 8.3% of advances, as against the reported GNPA of Rs 7.4 lakh crore (7.1%) as of December 31, 2020. Also, on a proforma basis, the net NPA for the banking system stood at Rs 2.7 lakh crore, or 2.7% of advances, as against the reported NNPA of Rs 1.7 lakh crore (1.7%) as of December 31, 2020.