Connect with us

Hi, what are you looking for?


Banks’ GNPA ratio falls to multi-year low of 2.8%

Scheduled Commercial Banks’ (SCBs) gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8%, and the net non-performing assets (NNPA) ratio decreased to 0.6% at end-March 2024, according to the 29th issue of the Financial Stability Report (FSR) released by the RBI. This improvement signifies better credit management and recovery practices within the banking sector, contributing to a stronger financial system.

The report also indicates that the capital-to-risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of SCBs stood at 16.8% and 13.9%, respectively.

The RBI’s macro stress tests for credit risk suggest that SCBs would be able to meet minimum capital requirements under various stress scenarios, with the system-level CRAR projected to be 16.1%, 14.4%, and 13% under baseline, medium, and severe stress conditions by March 2025.

NBFCs have also demonstrated healthy performance, with a CRAR of 26.6%, a GNPA ratio of 4%, and a return on assets (RoA) of 3.3% at end-March 2024.

The FSR highlights the overall stability of the Indian financial system, bolstered by sustained credit expansion and improved balance sheets of banks and financial institutions. Despite global economic challenges, including prolonged geopolitical tensions, elevated public debt, and slow progress in disinflation, the Indian economy remains resilient.

Globally, the financial system has maintained stability, with financial conditions remaining stable despite the heightened risks. The FSR underscores that the global financial system’s resilience is crucial amid these ongoing challenges.

PR Newswire

Copyright © Glocal Infomart Pvt Ltd. All rights reserved. Usage of content from website is subject to Terms and Conditions.