SFBs Balance sheet growth raises quality concerns

Current Context: According to the Financial stability report rapid growth in the balance sheets of small finance banks (SFBs) has raised concerns about asset quality, especially in standard restructured loans.

• As per the report, the share of restructured advances was about 3.5% of total advances as of March 2022.
• Restructured standard advances remain higher than pre-pandemic levels.
• The entire SFBs forms 1% of the total assets of the scheduled commercial banks.
• Gross non-performing assets (NPAs) of SFBs stood at 5% at end of March 2022, compared to 6% in September 2021.
• SFBs provide a savings vehicle for underserved sections of the population and also meet the credit needs of small borrowers.

Question:

Q.1 As per RBI report, the gross non performing assets of SFBs pegged at ___________?
a. 3%
b. 5%
c. 4%
d. 2%