LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

RBI Financial Stability Report: Surprise! Banks asset quality improves; gross NPAs down

Since past few fiscal years, banks have been struggling with heavy stressed assets, which even impacted their ability to lend, weak net interest income (NII), higher provisions, all of which led to lackluster earnings. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
RBI Financial Stability Report: Surprise! Banks asset quality improves; gross NPAs down
Representational Image: Photo: Pixabay
Written By: ZeeBiz WebTeam
Updated: Mon, Dec 31, 2018
07:55 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
RBI Financial Stability Report: Breather in asset quality for banks in these sectors RBI Financial Stability Report: Breather in asset quality for banks in these sectors
Happy New Year 2019! Good news! RBI Financial Stability Report out; Banks back on track Happy New Year 2019! Good news! RBI Financial Stability Report out; Banks back on track

The Reserve Bank of India (RBI) released the 18th issue of the Financial Stability Report (FSR). This December, 2018 report reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on risks to financial stability of the country, as also the resilience of the financial system. One of the key highlights in this report was banking system's asset quality, which has surprisingly started to show improvement with gross non-performing assets (NPAs) decelerating during September,  2018 quarter. 

Since past few fiscal years, banks have been struggling with heavy stressed assets, which even impacted their ability to lend, weak net interest income (NII), higher provisions, all of which led to lackluster earnings. 

However, December 2018 Financial Stability Report of RBI shows different picture and looks like finally banks can rejoice. 

According to RBI, asset quality of Scheduled Commercial Banks (SCB) showed improvement with  gross non-performing assets (GNPA) ratio declining from 11.5% in March 2018 to 10.8% in September 2018. 

Their net non-performing assets (NNPA) ratio also registered a decline during the period. 

In a sign of possible recovery from the impaired asset load, RBI says, "The GNPA ratio of both public and private sector banks showed a half-yearly decline, for the first time since March 2015, the financial year-end prior to the launch of Asset Quality Review (AQR)."

Restructured standard advances (RSAs) ratio steadily declined in September 2018 to 0.5% following the withdrawal of various restructuring schemes in February 2018. 

RBI says,  "This suggested increasing shift of the restructured advances to NPA category. Even the y-o-y growth in GNPA of SCBs decelerated in September 2018 across all bank groups barring foreign bank."

Meanwhile, the report explained that, provision coverage ratio (PCR) of all SCBs was higher in September 2018 as compared to March 2018, with improvements noticed for both PSBs and PVBs.

Distribution of banks’ GNPA ratio shows that number of banks having GNPA ratio less than 10% has gone down in September 2018 as compared to March 2018.

In fact, capital to risk-weighted assets ratio (CRAR) of SCBs declined marginally from 13.8% in March 2018 to 13.7% in September 2018.

CRAR of PSBs declined from 11.7 per cent to 11.3%. There was a marginal decline in Tier I leverage ratio of the SCBs between March and September 2018.

Following which, RBI now believes that, projected GNPA ratio under the baseline scenario may decline from 10.8% in September 2018 to 10.3 per cent in March 2019. 
 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Financial Stability Report (FSR)RBI Financial Stability Reportbanks asset quality
RELATED NEWS
RBI Financial Stability Report: Breather in asset quality for banks in these sectors RBI Financial Stability Report: Breather in asset quality for banks in these sectors
Happy New Year 2019! Good news! RBI Financial Stability Report out; Banks back on track Happy New Year 2019! Good news! RBI Financial Stability Report out; Banks back on track

LATEST NEWS

Pensioners ALERT: RUSH! Last date to submit digital life certificate tomorrow—Avail doorstep service from SBI, PNB, BoB and other banks

7th Pay Commission: CONFIRMED! 3% DA, DR hike for government employees, pensioners of THIS state from March 1

Covid 19 2nd phase vaccination drive from March 1: EXPLAINED! Who are eligible, required photo identity, advance self-registration—All you need to Know

CBSE exam 2021: Class 10, 12 students should know THESE 10 points before appearing for board exams

SoftBank reaches settlement with former WeWork CEO Neumann

Stock Market Outlook: Nifty, Bank Nifty crucial levels REVEALED; Anil Singhvi explains key reasons behind massive fall

7th Pay Commission Latest News: Check out these vacancies notified by UPSC; salary up to Rs 1,77,500 plus DA and other allowances

ISRO First Mission in 2021: Indian rocket to launch Brazilian satellite, PM Modi picture on spacecraft, space privatisation and more

Oil drops on dollar strength and OPEC+ supply expectations

Bank Holidays March 2021: RBI says banks will remain closed on these many days next month

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved