Gross bank NPAs could reach 9.5% under severe stress scenario by September 2022: RBI report


RBI says banks’ gross PNAs could increase in worst-case scenario

Banks’ gross non-performing assets (GNPA) could rise from 6.9% in September 2021 to 8.1% in September 2022 in the baseline scenario, while in the severe stress scenario, they could reach 9, 5%.

This is what the Reserve Bank of India’s (RBI) financial stability report revealed.

However, the report also indicated that programmed commercial banks would have sufficient equity capital, both at the aggregate and individual level, even under stressful conditions.

He further stated that the emerging signs of stress in micro, small and medium enterprises (MSMEs) as well as in the microfinance segment require close monitoring of these portfolios going forward.

The RBI report noted that the global economic recovery lost momentum in the second half of 2021, mainly due to the re-emergence of coronavirus infections and the new Omicron variant.

Supply disruptions and bottlenecks, high inflation levels and changes in monetary policy positions and actions in advanced economies as well as emerging market economies have also been contributing factors. behind the slow economic recovery, according to the RBI report.

Domestically, however, advances in immunization have allowed the recovery to pick up steam after the debilitating second wave of the pandemic, despite more recent signs of slowing down, he said, adding that the corporate sector is strengthening and bank credit growth is improving. .

Listed commercial banks’ risk-weighted assets (CRAR) ratio hit a new high of 16.6% and their provisioning coverage ratio (PCR) stood at 68.1% in September 2021.


Source link

Previous Growing Up In Cleveland | News, Sports, Jobs
Next The race for greener electric vehicles | News | Eco-Business