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JK PAPER LIMITED | 633.75 | +18.49% |
TV18 BROADCAST LIMITED | 45.55 | +9.68% |
SOLAR INDUSTRIES (I) LTD | 11,019.10 | +9.12% |
EPL LIMITED | 220.20 | +9.01% |
SUMITOMO CHEM INDIA LTD | 512.60 | +7.07% |
Name | Last | Chg.% |
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NIP IND ETF GOLD BEES | 60.72 | +0.28% |
NIP IND ETF PSU BANK BEES | 80.87 | -0.98% |
CPSE ETF | 94.23 | +0.31% |
NIP IND ETF IT | 39.77 | +1.17% |
NIP IND ETF LIQUID BEES | 1,000.00 | +0.00% |
Name | Last | Chg.% |
---|---|---|
KESORAM INDUSTRIES LTD | 213.59 | -0.28% |
GOKUL AGRO RESOURCES LTD | 178.11 | +0.42% |
DHANI SERVICES LIMITED | 58.02 | +10.47% |
TIDE WATER OIL LTD | 2,392.40 | +0.76% |
MIRAEAMC - MAMFGETF | 147.41 | -0.99% |
market today
Business News
3 min read | Updated on June 28, 2024, 11:29 IST
SUMMARY
Among bank groups, public sector lenders recorded a substantial reduction of 76 basis points in their GNPA ratio during the second half of fiscal year 2023-24, the Financial Stability Report of the RBI stated.
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The gross non-performing assets (NPAs) of commercial banks slid to 2.8% in March 2024, which was the lowest in the last 12 years, the Reserve Bank of India (RBI) said in its Financial Stability Report (FSR) released on Thursday.
"The asset quality of SCBs recorded sustained improvement, and their GNPA ratio moderated to a 12-year low in March 2024. Their NNPA ratio too improved to a record low," the report stated.
While the gross NPA declined to 2.8%, the net NPA came down 0.6% as of March 31, 2024, it added.
According to the FSR, the gross NPA can come down to a low of 2.5% by the end of financial year 2024-25.
Also Read: RBI’s foreign gold reserves hit 6-year low, domestic reserves touch 53%
Among bank groups, public sector banks (PSBs) recorded a substantial reduction of 76 basis points (0.76%) in their GNPA ratio during the second half of fiscal year 2023-24.
While the GNPA stock decreased across all bank groups, active and deep provisioning by PSBs and foreign banks (FBs) resulted in an improved provisioning coverage ratio (PCR) in March 2024, the report said.
The half-yearly slippage ratio (viz, new NPA accretions as a share of standard advances) decreased across bank groups.
Though the amount of write-offs declined during the year, the write-off ratio remained almost at the same level a year ago due to a reduction in GNPA stock, the FSR said.
Overall, it added the sustained reduction in the GNPA ratio since March 2020 has been primarily due to a persistent fall in new NPA accretions and increased write-offs.
The RBI said macro stress tests are performed to assess the resilience of SCBs’ balance sheets to unforeseen shocks emanating from the macroeconomic environment.
These tests attempt to assess capital ratios over a one-year horizon under a baseline and two adverse (medium and severe) scenarios.
"The GNPA ratio of all SCBs may improve to 2.5 per cent by March 2025 under the baseline scenario," the report said.
However, if the macroeconomic environment worsens to a severe stress scenario, the ratio may rise to 3.4 per cent.
Under the severe stress scenario, the GNPA ratios of PSBs may increase from 3.7 per cent in March 2024 to 4.1 per cent in March 2025, whereas it may go up from 1.8 per cent to 2.8 per cent for private sector banks and from 1.2 per cent to 1.3 per cent for FBs.
The Financial Stability Report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability.
The report further said deposit mobilisation by SCBs gathered pace during 2023-24, with a large portion of new accretions in the form of term deposits.
"Interest rates became more attractive as banks stepped up efforts to mobilise funds to match the rapid rise in credit demand. Growth in current account and savings account (CASA) accelerated across all bank groups," the RBI said.
According to the report, bank credit accelerated during H2 2023-24 among public sector banks (PSBs) and foreign banks (FBs), whereas it moderated in respect of private sector banks (PVBs).
The share of credit to the services sector and personal loans in the aggregate loan portfolio increased.
Personal loans accounted for over half of PVBs’ credit growth.
The expansion in personal loans was broad-based, led by housing loans and followed by other personal loans.
With PTI inputs
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Name | Last | Chg.% |
---|---|---|
JK PAPER LIMITED | 633.75 | +18.49% |
TV18 BROADCAST LIMITED | 45.55 | +9.68% |
SOLAR INDUSTRIES (I) LTD | 11,019.10 | +9.12% |
EPL LIMITED | 220.20 | +9.01% |
SUMITOMO CHEM INDIA LTD | 512.60 | +7.07% |
Name | Last | Chg.% |
---|---|---|
NIP IND ETF GOLD BEES | 60.72 | +0.28% |
NIP IND ETF PSU BANK BEES | 80.87 | -0.98% |
CPSE ETF | 94.23 | +0.31% |
NIP IND ETF IT | 39.77 | +1.17% |
NIP IND ETF LIQUID BEES | 1,000.00 | +0.00% |
Name | Last | Chg.% |
---|---|---|
KESORAM INDUSTRIES LTD | 213.59 | -0.28% |
GOKUL AGRO RESOURCES LTD | 178.11 | +0.42% |
DHANI SERVICES LIMITED | 58.02 | +10.47% |
TIDE WATER OIL LTD | 2,392.40 | +0.76% |
MIRAEAMC - MAMFGETF | 147.41 | -0.99% |