According to the credit rating agent, GNPA Bank India at the end of FY22 was at 5.9 percent and the overall scope of the provisions (PCR) rose to 70.9 percent.

Because the Indian economy has navigated shocks induced by Pandemic, bank credit growth by commercial banks scheduled (SCB) improved post-August 2021 to reach 13.1 percent in early June 2022, the last level was recorded in March 2019,” the report was said .

Apart from retail, the main driver of growth is a wholesale credit, which reported two digit growth after witnessing a significant slowdown last year.

According to the maintenance ranking, the Reserve Bank of India (RBI) financial stability report released on June 30 presents a rather satisfying picture of the Indian banking system and the GNPA ratio is one of the most important indicators for checking the health of the banking system.

The SCB GNPA ratio has been on the downward track since March 2019, due to higher recovery and removal by several banks and one -time restructuring scheme (OTR) announced by the RBI.

According to the stress test conducted by RBI, the GNPA SCBS ratio can increase from 5.9 percent in March 2022 to 5.3 percent in March 2023 under the baseline scenario driven by higher bank credit growth and the trend of decline in GNPA stock.

However, the GNPA ratio can rise under medium/ severe stress scenarios, the GNPA ratio can rise to 6.2 percent/ 8.3 percent, each,” said the ranking of treatment.

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Elara Gill

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