 "RBI")
The gross bad debt ratio of the banking system may touch a two-decade high, with banks under prompt corrective action (PCA) expected to be the worst hit, warned the Financial Stability Report (FSR) released by the Reserve Bank of India (RBI) on Tuesday.
As bad debts balloon, the money set aside as provisions would drag down the capital position of Indian banks, with at least six banks witnessing a shortfall of capital, the inter-regulatory report warned.
Under the current macroeconomic environment, the gross non-performing asset (GNPA) ratio of scheduled commercial banks may rise to 12.2 per cent of
As bad debts balloon, the money set aside as provisions would drag down the capital position of Indian banks, with at least six banks witnessing a shortfall of capital, the inter-regulatory report warned.
Under the current macroeconomic environment, the gross non-performing asset (GNPA) ratio of scheduled commercial banks may rise to 12.2 per cent of
