GNPA) RATIO OF SCHEDULED COMMERCIAL BANKS REACHED A 12-YEAR LOW
Why in the news?
- The Reserve Bank of India’s Financial Stability Report for June 2024 highlights that the gross non-performing assets (GNPA) ratio of scheduled commercial banks reached a 12-year low of 2.8% in March 2024.
- The GNPA ratio is projected to further improve to 2.5% by March 2025, based on macro stress tests assessing banks’ resilience to economic shocks.
Source: Startupchallenge
Current GNPA and NNPA Status
- The GNPA ratio of scheduled commercial banks recorded a sustained improvement, moderating to 2.8% in March 2024.
- The net non-performing assets (NNPA) ratio also improved to a record low of 0.6%, reflecting enhanced asset quality.
About Financial Stability Report :
- The Financial Stability Report is released by the RBI twice a year.
- It details the state of financial stability in the country, incorporating inputs from all financial sector regulators.
Key Terms:
NPA (Non-Performing Asset)
GNPA (Gross Non-Performing Asset)
NNPA (Net Non-Performing Asset)
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