Gross non-performing asset ration dips to seven-year low of 5.0%: RBI report

Reserve Bank released the 26th issue of the Financial Stability Report (FSR), which reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability and the resilience of the financial system.

Gross non-performing ration dips to seven-year low of 5.0%: Report.

New Delhi: The gross non-performing asset (GNPA) ratio of scheduled commercial banks (SCBs) fell to a seven-year low of 5.0%, according to the 26th issue of the Financial Stability Report (FSR) released by the Reserve Bank of India on Thursday. Moreover, net-non performing assets (NNPA) have dropped to ten-year low of 1.3 % in September 2022.

The Financial Stability Report, which reflects the collective assessment on risks to financial stability and the resilience of the financial system, has further mentioned that the global economy is facing formidable headwinds with recessionary risk looming large. The interplay of mulitple shocks has resulted in tightened financial conditions and heightened volatility in financial markets.

“The Indian economy is confronting strong global headwinds. Yet, sound macroeconomic fundamentals and healthy financial and non-financial sector balance sheets are providing strength and resilience and engendering financial system stability,” the report added.

It further explained that Buoyant demand for bank credit and early signs of a revival in investment cycle are benefiting from improved asset quality, return to profitability and strong capital and liquidity buffers of scheduled commercial banks (SCBs).