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Credit growth to industry remained in negative zone during 2020-21: RBI
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Top Nirmala Sitharaman Announcements: Credit Line, Loan Guarantee
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Credit guarantee scheme for facilitating MFIs loans announced
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‘Bank NPAs set to rise, deposit growth outpacing credit flow’
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‘Expansion in credit in FY21 was the lowest in four years’
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‘Expansion in credit in FY21 was the lowest in four years’
Gross non-performing asset (GNPA) ratios of scheduled commercial banks (SCBs) are expected to shoot up in the coming quarters, according to data compiled by BCT Digital. This is despite the regulatory interventions to provide relief to both borrowers and lenders in the wake of the pandemic.
The GNPA for the banking system was at 7.5% in September 2020, an improvement from pre-pandemic levels, and coming after the asset quality review mandated by the regulator. This number is expected to shoot up to 13.5% in a base-case scenario and 14.8% in an extreme scenario by September 2021 as per RBI’s assessment in the latest Financial Stability Report (FSR), said Jaya Vaidhyanathan, CEO of BCT Digital, which helps banks manage risk.
As the country suffers the threat of death and disease, financial struggle looms over it. There has been a huge loss for several of the economy. The government has issued aid, however, it is insufficient and neglects the unorganized sector entirely.