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This Article is From Jan 12, 2021

RBI Financial Stability Report: GNPAs To Increase To 13.5% By September -Motilal Oswal’s Take 

 RBI Financial Stability Report: GNPAs To Increase To 13.5% By September -Motilal Oswal’s Take 
The Reserve Bank of India (RBI) logo is displayed on a wall inside the central bank’s regional headquarters in New Delhi, India (Photographer: T. Narayan/Bloomberg)

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The Reserve Bank of India released its financial stability report wherein it maintained a cautious stance on the asset quality of banks and indicated that gross non-performing asset ratio for Scheduled Commercial Banks could escalate to 13.5% (versus 7.5% in H1 FY21) under its baseline scenario.

If the situation worsens, the GNPA ratio could deteriorate to 14.8% under its severe stress scenario.

The central bank indicated that SCBs have sufficient capital at the aggregate level. However, at the individual level, few banks may fall below the regulatory minimum if stress aggravates to its severe scenario.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

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