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SFBs Balance sheet growth raises quality concerns

Published on July 03, 2022
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.
SFBs Balance sheet growth raises quality concerns
  • 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%
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