 "FSR report by the RBI said stress testing indicated banks NPAs ratio might rise from 9.6% in end-March 2017 to 10.2% by end-March 2018")
The financially stressed banking sector and leveraged corporate balance sheets might block the country’s economic growth, says the Financial Stability Report (FSR).
The FSR, a 6-monthly report issued by the Reserve Bank of India (RBI) says investment demand remains weak.
On asset quality at commercial banks, the FSR said stress testing indicated that under a baseline scenario, their gross non-performing assets ratio might rise from 9.6 per cent in end-March 2017 to 10.2 per cent by end-March 2018. If macro economic conditions deteriorate, this ratio could increase. Stress on the books would also impact banks’ capital adequacy ratio
The FSR, a 6-monthly report issued by the Reserve Bank of India (RBI) says investment demand remains weak.
On asset quality at commercial banks, the FSR said stress testing indicated that under a baseline scenario, their gross non-performing assets ratio might rise from 9.6 per cent in end-March 2017 to 10.2 per cent by end-March 2018. If macro economic conditions deteriorate, this ratio could increase. Stress on the books would also impact banks’ capital adequacy ratio
