With the stress in the economy expected to remain elevated, the gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs) could hit the 11 per cent mark by end-September next year, according to the Reserve Bank of India’s Financial Stability Report (FSR).
The overall risks to the banking sector remained elevated due to asset quality concerns. Between March and September, the GNPA advances ratio of SCBs increased from 9.6 per cent to 10.2 per cent, and the stressed advances ratio marginally increased from 12.1 per cent to 12.2 per cent. Public sector banks (PSBs) registered GNPA ratio at 13.5 per