|
|
|
Exposure of banks to MSME sector increasing
|
|
|
|
Top Stories |
|
|
|
|
SME Times News Bureau | 05 Jul, 2021
The Reserve Bank of India (RBI) has said that exposure of banks to
better-rated large borrowers is declining, while signs of stress are
being witnessed in the MSME and retail sectors.
Within the
domestic financial system, credit flow from banks and capital
expenditure of corporates remains muted, said a report by the central
bank.
"While banks' exposures to better rated large borrowers are
declining, there are incipient signs of stress in the micro, small and
medium enterprises (MSMEs) and retail segments," said the recently
released Financial Stability Report for July 2021.
Further, the
demand for consumer credit across banks and non-banking financial
companies (NBFCs) has dampened, with some deterioration in the risk
profile of retail borrowers becoming evident.
As per the report,
macro stress tests indicate that the gross non-performing asset (GNPA)
ratio of scheduled commercial banks (SCB) may increase from 7.48 per
cent in March 2021 to 9.80 per cent by March 2022 under the baseline
scenario.
In case of a severe stress scenario, the GNPA may rise
to 11.22 per cent, although SCBs have sufficient capital, both at the
aggregate and individual level, even under stress.
Further, the
capital to risk-weighted assets ratio (CRAR) of scheduled commercial
banks (SCBs) increased to 16.03 per cent and the provisioning coverage
ratio (PCR) stood at 68.86 per cent in March 2021.
In his
foreword for the report, RBI Governor Shaktikanta Das said that the
sustained policy support along with further strengthening of capital
buffers by banks and other financial institutions remain vital amid the
Covid-19 pandemic.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|