Insta
The Reserve Bank of India (Aniruddha Chowdhury/Mint)
Although stress in the country’s banking sector continues to remain high, it may be bottoming out fast, the Reserve Bank of India(RBI) has said in its latest Financial Stability Report released on Thursday (21 December).
"The stress in the banking sector, particularly the Public Sector Banks (PSBs), while significant, appear to be bottoming out," the regulator noted.
The RBI, however, noted in the report that bad loans might rise a little further with gross non-performing assets expected to hit 11.1 percent of all loans by September 2018. It also revealed that the private sector banks registered higher increase in their total non-performing assets as compared to their state-run banks.
"The recent capitalisation plan announced by the government for PSBs is expected to significantly augment capital buffers of affected banks as also the credit growth," the RBI report added.
The government has announced a Rs 2.11 lakh crore capital infusion in PSBs, including Rs 1.35 lakh crore worth recapitalisation bonds.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.
Latest