‘GNPA ratio may rise up to 11.2% in FY22’

RBI sees banks’ gross NPA ratio climbing to 9.8% under baseline scenario, from 7.48% in March 2021

The gross non-performing asset (GNPA) ratio of India’s Scheduled Commercial Banks (SCBs) may climb by the end of the current fiscal year to as much as 11.2% under a severe stress scenario, from 7.48% in March 2021, the Reserve Bank of India (RBI) said in the Financial Stability Report released on Thursday. “Macro stress tests indicate that the gross non-performing asset (GNPA) ratio of SCBs may increase... to 9.8% by March 2022 under the baseline scenario; and to 11.22% under a severe stress scenario, although SCBs have sufficient capital, both at the aggregate and individual level, even under stress,” the RBI said. “The capital to risk-weighted assets ratio (CRAR) of SCBs increased to 16.03% and the provisioning coverage ratio (PCR) stood at 68.86% in March 2021,” the central bank said in its report.