Top Headlines: RBI on NPAs, Urjit Patel on rift with govt, and more

Here are the top headlines of the day

Indian banking system safe, but NPAs may shoot up, says RBI

The banking system is safe, sound and resilient, but the gross non-performing assets (NPA) ratio may increase from 8.5 per cent in March to 12.5 per cent by March 2021 under the baseline scenario, the Reserve Bank of India (RBI) estimates. The GNPA ratio could worsen to 14.7 per cent under a “very severely stressed scenario,” the bi-annual Financial Stability Report (FSR) said, but banks are better capitalised and the risk of contagion loss due to interconnectedness is lesser now than what it was a year ago. Read more