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.
Reference: https://www.thehindu.com/business/Economy/banks-gross-npas-may-climb-to-as-much-as-147-by-march-rbi/article32183499.ece#:~:text=The%20Reserve%20Bank%20of%20India,the%20COVID%2D19%20pandemic%20was
1.png)
