"Banks in Bali have been strict in observing prudential banking principles as reflected by the decline in NPL," Dwi Pranoto, the head of the regional office of the central bank, said here on Wednesday.
The NPL is healthy , much better than average NPL of 1.95 percent recorded by banks in other regions in the country, he said.
People's Credit Banks (BPR) in Bali also made progress in cutting their NPL to a safer level at 2.8 percent from 2.9 percent in the same period.
According to the country's central bank, healthy banks may not have NPL more than five percent.
Bank credits grew 60.35 percent on-year in the second quarter of 2013 bringing outstanding credits of banks in the province to Rp17.13 trillion by the ends of June, 2013.
Hotel and food and beverage sector accounted for 41.37 percent of the credit in the world`s famous tourist destination island.
Investment credits grew faster than working capital credits and consumer credits in Bali.
Decline in NPL also reflects conducive business in the tourism sector the largest source of income in Bali, Pranoto said.