InvestorQ : what was the gist of the findings of the RBI Financial Stability Report?
diksha shah made post

what was the gist of the findings of the RBI Financial Stability Report?

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Dhwani Mehta answered.
5 months ago
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The RBI Financial Stability Report or FSR issued for July and covering data up to Mar-21, has made some interesting points on macros and on the banking system. For example, the FSR has pegged gross NPAs of Indian banks in the range of 9.80%-11.22% as of Mar-22. While 9.8% will be a best case scenario, 11.22% will be a kind of worst case scenario. This is steeply higher compared to 7.48% in the Mar-21 year end.

The culprit this time around has been COVID 2.0 with possible risks of COVID 3.0 delta variant. The FSR notes that the impact would be more pronounced for PSBs with gross NPAs rising to as high as 12.52% in Mar-22. RBI made a valid point that the consumer credit situation had sharply deteriorated after the moratorium programme had ended in Sep-20. RBI has in fact praised the moratorium program, since it virtually averted a credit crisis.

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