Banks` gross NPA ratio falls to 7-year low of 5%: RBI
The Reserve Bank of India (RBI), in the 26th issue of the Financial Stability Report (FSR) has said that banks' gross non-performing assets (NPA) ratio has fallen to a seven-year low of 5 per cent and the banking system remains sound and well-capitalised.
RBI also said the global economy is facing formidable headwinds with recessionary risks looming large. It pointed out that the interplay of multiple shocks has resulted in tightened financial conditions and heightened volatility in financial markets.
It further stated the Indian economy is confronting strong global headwinds. Yet, sound macroeconomic fundamentals and healthy financial and non-financial sector balance sheets are providing strength and resilience and engendering financial system stability. On inflation, it said though prices are elevated, frontloading of monetary policy actions and supply side interventions are easing the pressure.
