Gross Non-Performing Asset may climb to 9.5 per cent by September 2022 – RBI.
Delhi: The RBI’s half-yearly stress tests indicate that Gross Non-Performing Asset may climb from 8.1 per cent to 9.5 per cent by September next year. This has increased from 6- year low of 6.9 per cent in September this year. However, the bad loans would still be in single digits even in a worst-case scenario.
The Financial Stability Report released by RBI on Wednesday projects that outcomes are the most optimistic since the pandemic broke out. It couched with the assurance that banks are adequately capitalized to absorb the credit losses and meet prudential guidelines.
RBI’s trends on Tuesday had shown the sector’s Gross NPA ratio declining from 6.9 per cent in September 2021 to 8.2 per cent, a year ago. It also warned that the stress test shows Public Sector Banks’ gross NPAs may worsen to 10.5 per cent by September next year. In a foreword of the report, RBI Governor Shaktikanta Das said ‘balance sheets of banks remain strong and capital and liquidity buffers are being bolstered to mitigate future shocks.
