New Delhi, July 4 -- Indian banks continue to see an improvement in asset quality with bad loans as a percentage of total loans expected to fall to 9% by March 2020, according to the Financial Stability Report released by the Reserve Bank of India (RBI) on 27 June . The gross non-performing assets (NPAs) as a percentage of total loans stood at 9.3% as on March 2019. According to the bi-annual report, stress tests done on public sector banks (PSBs) revealed that gross non-performing ratio may decline to 12% by March 2020 from 12.6% in March 2019. Private sector banks too could see a fall in gross NPAs to 3.2% from 3.7% during the same period. These stress tests for credit risk were done to test the resilience of Indian banks against macroeco...