Banks’ gross NPAs may climb to as much as 14.7% by March: RBI
27th July, 2020
RBI Statement:
its stress tests indicated that the gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs) could worsen to as high as 14.7% by the end of the current financial year, from 8.5% in March 2020
Bank credit had slid down to 5.9% by March 2020 and remained muted up to early June 2020.
In terms of inter-sectoral exposures, asset management companies/mutual funds (AMC-MFs), followed by insurance companies, and were the biggest fund providers in the system.
Non-banking financial companies (NBFCs) were the biggest receivers, followed by housing finance companies (HFCs).
The Indian financial system remained stable, notwithstanding the significant downside risks to economic prospects.