Holi Offer - Use Code HOLI24

Register Now

Banks’ Gross NPA drop below 6% in March 2022, lowest in Six Years

Published on June 17, 2022
Current Context: Gross non-performing assets (NPAs) of the banking sector dropped below 6% as of March 2022 the lowest since 2016 and net NPAs fell to 1.7% during the same period.
Banks’ Gross NPA drop below 6% in March 2022, lowest in Six Years
  • This indicates that the sector has remained largely unscathed from the ill effects of the Covid-19 pandemic.
  • In addition to that Asset quality of banks has improved, and the gross NPAs and net NPAs of the banks have improved from the pre-pandemic levels.
  • Besides the fresh slippages have also broadly been brought under control. Banks have also enhanced their provisions including provisions for restructured accounts.
  • In the early part of the last decade quality of Indian banks started deteriorating and again peaked in March 2018 with gross NPA hitting 11.5 percent of gross advances.
  • But in the last year onwards there has been a consistent improvement.
  • Gross NPAs of scheduled commercial banks were 7.3 percent in March 2021 and 6.9 percent in September 2021.
  • Banks have also increased their capital base to deal with any untoward situation that may arise going forward.

Question:

Q.1 According to a recent report Gross non-performing assets (NPAs) of the banking sector dropped below_______ as of March 2022?
a. 7%
b. 8%
c. 6%
d. 10%
ebook store

About us

ramandeep singh

Ramandeep Singh is a seasoned educator and banking exam expert at BankExamsToday. With a passion for simplifying complex concepts, he has been instrumental in helping numerous aspirants achieve their banking career goals. His expertise and dedication make him a trusted guide in the journey to banking success.

  • Follow me:
Close Menu
Close Menu