AS per the report revealed on Wednesday says, Scheduled commercial banks’ gross non-performing asset (GNPA) ratio may increase to 8.1%-9.5% by September 2022 from a near six-year low of 6.9% in September 2021.
Well, RBI’s trends and improvement statement had exposed the sector’s GNPA ratio deteriorating to 6.9% in September 2021 from 8.2% a year before, whereas threatening of deterioration with the rollback of regulatory restraint.
The FSR stated depending on the stress tests, the GNPA ratio may increase to 8.1% by September 2022 under the starting position situation and to 9.5% under severe stress, if the financial status is affected by an Omicron surge.
The stress tests displayed that all bannks would be capable to keep to the minimum capital needs even when they are going through serious stress consequences, the central bank said. Though, the same tests on non-banks exposed a momentous number of them would be the winner if there are liquidity blows and the network examination facts to rising inter-bank revelation, increasing contagion threats.
Well, within the bank groups,
public sector bannks’ (PSBs’) GNPAs may decline to 10.5% by September 2022 from 8.8% in September 2021 under the baseline state whereas, for the private bannks, the count of the gross bad loan ratio may upsurge to 5.2% from 4.6%.
Worries continue around some sections of retail credit, with PSBs sighted 12.7% of their credit card receivables turning bad as of September 2021. Private Bannks were much better off with an NPA ratio of 3.1% in the credit card segment.
SBI Card is amongst the highest three players in the credit card market, with a share of 19.4% in words of cards in force and 19% in expends at the end of the month of August 2021. ICICI Bank and HDFC Bank are the other big companies in the segment.