Login With Google
RBI's Financial Stability Report
Why is it in the news ?
- According to the Reserve Bank of India’s latest Financial Stability Report, despite concerns, credit growth of the scheduled commercial banks (SCBs) improved across all bank groups between March and September 2018.
- Also the Indian banks have reported a decline in the proportion of bad loans for the half-year ended September 2018.
- The Reserve Bank of India release this report half-yearly , which take stock of the strength and stability of Indian banks.
More in the news
NPA's :
- The aggregate Gross Non-Performing Asset (GNPA) ratio dipped from 11.5% in March 2018 to 10.8% in September 2018.
- Bad loans, however, continued to rise in the micro, small and medium enterprises category.
- The GNPA ratio captures the proportion of loans in a bank’s books on which borrowers haven’t repaid dues for more than 90 days.
- The trend started tamely enough, with banks reporting a GNPA ratio of 3.4% in March 2013.
- The GNPA ratio more than doubled over the next three years to peak at 11.5% by March 2018.
- The bulk of bad loans remains concentrated with public sector banks (GNPA ratio of 14.8%), while private sector banks are much better off (3.8%).
Frauds :
- In the report, the RBI said 5,917 frauds involving an amount of Rs 41,167 crore were reported by the banks in fiscal year 2017-18, as against 4,306 frauds entailing an amount of Rs 10,170 crore in FY14.
- The graph of both the frauds as well as the amount involved has been on the rise steadily through the four years till FY18.
- The only exception was in fiscal year 2015-16, which saw a dip in the total amount involved as compared to the previous fiscal, even as the number of frauds rose marginally.
Source
The Hindu.