Npa

RBI’s Financial Stability Report (FSR) reveals the gross non-performing assets (GNPA) ratio has been gradually trending downwards from 9.3% in September 2019 to a seven-year low at 5.0% in September 2022, while net non-performing assets have dropped to a 10-year low of 1.3% of total assets. The stress tests in RBI’s Financial Stability Report showed that banks are capable of absorbing shocks even under adverse situations. Let's do an in-depth analysis of the report to determine its trend, the policy actions that have been helpful, and what can be done to make things even better.

Reserve Bank warns SC's stay order will have huge implications for the banking system if it is not lifted immediatelyCentre rules out further relief measures under loan moratorium scheme in Supreme Court affidavit

Unless money reaches new consumers, demand stimulus will not happen

LIC’s balance sheet grew to ₹31.24 trillion at the end of fiscal 2020 from ₹30.56 trillion in March 2019The government is likely to divest up to 10% stake in LIC to meet its divestment target and compensate for the widening fiscal deficit

Government needs to significantly increase its banking recapitalization plan in next five years considering the erosion of books of public sector banks due to rising

While Axis Bank has pegged its covid-19 provisions at ₹3,000 crore, ICICI Bank set aside ₹2,725 crore in the March quarter and HDFC Bank made additional provisions of ₹1,550 croreExperts feel that while it is almost certain that bad loans in the system will rise after the moratorium, it is to be seen to what extent are these provisions able to cushion them

Retail borrowers who are facing difficult times, and are unable to repay their loans even after the moratorium ends, will get another three months to regularise their loansAs a standard practice, lenders need to classify a loan as NPA if a borrower doesn’t repay for 90 days.

Industry leaders share their thoughts on credit and how to deal with credit distress at the Mint India Investment Summit

MoS Finance also said in Lok Sabha that scheduled commercial banks and select financial institutions have reported frauds to the tune of ₹1,13,374 crore as on 30 Sept, 2019Anurag Thakur was speaking during Question Hour

The Sensex lost 205.10 points or 0.5% to close at 41,323.81, while the broader Nifty50 fell 54.70 points or 0.45% to close at 12,169.85 pointsMost sectoral indices closed in the red. BSE Power index fell the most, down 1.5%, followed by BSE Realty index which fell 1.4%