RBI Financial Stability Report: GNPAs To Increase To 13.5% By September -Motilal Oswal’s Take
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Motilal Oswal Report
The Reserve Bank of India released its financial stability report wherein it maintained a cautious stance on the asset quality of banks and indicated that gross non-performing asset ratio for Scheduled Commercial Banks could escalate to 13.5% (versus 7.5% in H1 FY21) under its baseline scenario.
If the situation worsens, the GNPA ratio could deteriorate to 14.8% under its severe stress scenario.
The central bank indicated that SCBs have sufficient capital at the aggregate level. However, at the individual level, few banks may fall below the regulatory minimum if stress aggravates to its severe scenario.
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