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A Turnaround for Banks: Credit Growth, NPAs and MSME Sector Revival Syllabus: GS 3: ● Banking and Economy ● Economic policies and interventions Why in the News? Recent trends indicate a decline in gross non-performing assets (NPAs), especially in unsecured retail and MSME sectors, enabling a shift in credit dynamics across Indian banks. While overall …
Read MoreWhy 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 …
Read MoreWhy in the news? Bank credit growth in FY25 is projected to slow to 14% from 16% in FY24. The slowdown is attributed to a high base effect, revised risk weights, and a deceleration in GDP growth, according to CRISIL Ratings. source:medium About Credit Growth: Credit growth is the expansion of loans to individuals or …
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