According to a survey carried out by the Federation of Indian Chambers of Commerce & Industry (FICCI) and the Indian Banks' Association (IBA), Indian public sector banks are performing better than their rival Private sector banks regarding the non-performing assets. 

According to RBI, a non-performing asset (NPA) does not generate income for the banks. These are loans that do not bring income to the lenders as the borrower has failed to repay the interest. 

The data from the survey shows that public-sector banks are doing a better job of overseeing the NPAs than the private sector. All the public banks in the survey reported a decline in the NPAs in the last six months however, only 67% of private banks experienced a decline in NPAs. Additionally, 22% of private banks have also reported an increase in their NPAs, while none of the public and foreign banks have seen a rise.

Following the reports from the survey, there are some sectors which may continue to experience a rise in NPAs in the upcoming six months: garments, gems, textiles, agriculture, and jewellery. 

As per loan reconstruction, requests have decreased overall in the Indian banking sector. The current survey shows 44% of banks reporting a decrease in loan reconstruction requests and a 54% decline in the previous survey. 

Loan reconstruction is a method used by borrowers and lenders to renegotiate the current loan terms and avoid default. It can be carried out by shrinking loan EMI, extending tenure, etc. 

According to the data relayed by the survey, 50% of public sector banks have reported a decline in loan reconstruction requests, while 30% of the banks from the public sector have experienced a surge in the last six months. Around half the private sector banks have reported a drop in the reconstructions and only 10% have seen an increase, however, the foreign banks have noted no change in the loan reconstruction requests.

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