Annual Report of Reserve Bank of India
♦ The Reserve Bank of India, early in its semi-annual financial stability report, sometimes emphasized that by September 2021, under benchmark pressure, banks’ non-performing loan ratio may rise to 13.5%.
♦ In its report, the Reserve Bank of India warned: “Banks as lenders will have to provide real non-performing loans. After the Supreme Court (SC) lifted the moratorium on the classification of non-performing assets in March 2021.
♦ According to it, all loan accounts suspended between March and August 2020 will be exempt from compound interest, which will pressure the bank’s financial situation.
♦ The bank’s total net non-performing assets ratio fell from 8.2% in March 2020 to 6.8% in December 2020.
♦ The Bank’s Provision Coverage Ratio (PCR) increased from 66.6% in March 2020 to 75.5% in December 2020. This was due to banks’ careful provision of higher than required provisions during the suspension and restructuring of regulatory requirements. Provisions.
♦ By December 2020, the bank’s capital-to-risk-weighted asset ratio (CRAR) has increased to 15.9%, from 14.8% in March.
♦ The total net non-performing assets of non-bank financial institutions increased from 6.8% in March to 5.7% in December 2020. The capital adequacy ratio of NBFC increased from 24.8% in December 2020 to 23.7% in March.