TIL Desk/Business/Mumbai/ The RBI has said PSU banks” gross non-performing asset (GNPA) ratio may decline from 9.3 per cent in March, 2019 to 9.0 per cent in March, 2020, hinting at the reversal of the NPA cycle gripping the state lenders.
Underlining the strength of the banking sector while covering for the bad loans, it said “Provision coverage ratio (PCR) of all SCBs rose sharply to 60.6 per cent in March 2019 from 52.4 per cent in September 2018.
“The macro-stress tests for credit risk indicate that under the baseline scenario, SCBs” gross non-performing asset (GNPA) ratio may decline from 9.3 per cent in March 2019 to 9.0 per cent in March 2020,” the central bank said in its latest FSR report.
Patting the PSU banks on their backs with credit growth posting near double-digit growth, capital adequacy improvement, turnaround of NPA cycle and rise in provision coverage ratio of to cover NPAs and fall in gross NPA ratio, the RBI said credit growth is nearing double digits.
“Credit growth of scheduled commercial banks (SCBs) picked up, with public sector banks (PSBs) registering near double-digit growth. Capital adequacy of the SCBs improved after the recapitalisation of PSBs,” the RBI said in the latest Financial Stability Report.
