INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Stress in the banking sector is likely to remain elevated in the ongoing financial year
The gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs) could hit 12.20 per cent by March next year, according to
SCBs GNPA ratio stood at 11.60 per cent in March 2018.
The system-level capital to risk weighted assets ratio (CRAR) may come down from 13.5
per cent to 12.8 per cent during the same period, the report added.
It further added that 11 public sector banks under prompt corrective
action framework (PCA PSBs) may experience a worsening of their GNPA ratio from 21.0 per cent in March 2018 to 22.3 per cent, with six PCA
PSBs likely experiencing capital shortfall relative to the required minimum CRAR of 9 per cent.
RBI is positive on the global growth outlook
for 2018 despite some recent softness.
However, spillover risk from advanced financial markets to emerging markets has increased, RBI
said.
On the domestic front, economic growth is firming up
measures bode well for allocative efficiency and financial stability in the medium term even if there is some short-term pain in the
