|Event Date||Fri Aug 13 EDT (2 months ago)|
Stressed asset market is increasing in India and many of these assets are related to industries such as infrastructure, power, textile, steel, telecom and real estate. The stressed market in India comprises of assets worth $115 billion, accounting for about 16.6% of total loans, which is the highest level out of all major economies.
In January 2021, RBI warned that the banking sector NPAs are expected to shoot up to 13.5% of advances by September 2021, from 7.5% in September 2020, under the baseline scenario. The RBI has also warned that if the macroeconomic environment worsens into a severe stress scenario, the NPA ratio may escalate to 14.8%. This resulted in the low credit growth in FY 21 to 5.6%, compared to 6.1% in FY 2020. India recorded a GNPA ratio of 5.70% in the previous financial year against 8.08% in FY20.