PSU banks NPA decline to 5.53%

Published on March 21, 2023

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

PSU banks NPA decline to 5.53%

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%