Banks are likely to see a 90-bps decline in their gross non-performing assets (GNPAs) to 5% in the current fiscal and a further improvement to 4% by the end of March 2024, rating agency Crisil said on Wednesday. The key indicator of banks' asset quality is likely to improve, "riding on post-pandemic economic recovery and higher credit growth," the agency said in a statement. The asset quality of the sector will also benefit from the proposed sale of NPAs to National Asset Reconstruction Company (NARCL), the agency said. Crisil director Subha Sri Narayanan said, "We expect slippages to trend 50 bps lower at ~2.0% for fiscal 2024 versus 2.5% last fiscal as the economy stabilises. This should support asset quality metrics even as the pace of write-offs, which contributed almost 60% to the reduction in gross NPAs in the past three fiscals, and large-ticket resolutions decelerate.