- 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%
