PSU banks NPA decline to 5.53%

Current Context: The Non-performing assets (NPA) has decreased to 5.53% in December 2022 from 14.6% in March 2018.

• Market cap of PSB’s increased from RS.4.52 lakh crore in March 2018 to Rs. 10.63 lakh crores in December last year.
• To recognize NPA’s the 4R strategy has to be implemented to bring reforms in the financial system.
• In 2016 government gave the approval to disinvest in 36 PSE’s.33 are being under Department of Investment and Public Asset Management.
• Capital adequacy ratio of PSB’s is 14.5% in December 2022 and in March 2015 is 11.5%.
• The provision coverage ratio of PSB’s is at 89.9% from 46%.

Question:

Q.1 The Non-performing assets (NPA) has decreased to ______ in December 2022 from 14.6% in March 2018.
a. 5.53%
b. 6.74%
c. 4.65%
d. 10.1%