The asset quality of banks is likely to improve, as the latest biannual Financial Stability Report (FSR) of the Reserve Bank of India shows. The gross non-performing assets (GNPA) ratio of all scheduled commercial banks (SCBs) declined to 10.8% in September 2018 from 11.5% in March 2018. Going forward, it is likely to decline to 10.3% in March 2019 and 10.2% in September 2019. The GNPA ratio of both public and private sector banks showed a half-yearly decline, for the first time since March 2015. The distribution of banks\u2019 GNPA ratio shows that the number of banks having GNPA ratio less than 10% has gone down in September 2018 as compared to March 2018. ALSO READ:\u00a0Turn of fortune for Indian rupee: From Asia\u2019s best performer to worst in just two weeks Sector-wise, the asset quality of industry improved in September 2018 as compared to March 2018 because of a reduction in fresh slippages, but that of agriculture and retail sectors deteriorated.