The gross nonperforming assets (GNPA) ratio of all scheduled commercial banks (SCBs) will increase from 8.5% in March 2020 to what amount by March 2021?
Answer with explanationAnswer: Option C
The macro stress tests for credit risk indicate that the GNPA ratio of all SCBs may increase… to 12.5% by March 2021 under the baseline scenario,” the RBI said in its Financial Stability Report, July 2020. “The ratio may escalate to 14.7% under a very severely stressed scenario,” which assumes hypothetically that the GDP would suffer a contraction of 8.9% in 2020-21, the central bank added. In the baseline case, the GDP is assumed to contract 4.4%
Discuss about the question