%20(500%20%C3%97%20280%20px)%20(500%20x%20300%20px)%20(74).png "RBI released a report titled “Peeling the Layers: A Review of the NBFC Sector in Recent Times”")
- This report highlights the resilience of the Non-Banking Financial Companies (NBFC) sector under the Scale-Based Regulations (SBR) framework.
- Key Points from the Report:
- Credit Growth: The NBFC sector maintained double-digit credit growth throughout 2023, driven by a diversified funding base, including retail credit (gold loans, vehicle loans, and housing loans) and expanding into industrial and service sectors.
- Asset Quality: Since the introduction of the SBR framework in October 2022, the asset quality of NBFCs has improved significantly. The gross non-performing asset (GNPA) ratio decreased to 2.4% for government-owned NBFCs and 6.3% for non-government NBFCs by December 2023.
- Profitability: The sector witnessed a rise in profitability, as evidenced by better returns on assets (RoA) and equity (RoE).
- Capital Adequacy: NBFCs maintained adequate capital levels and a low delinquency ratio by the end of December 2023.
- Regulatory Measures: The report also mentions the extension of Prompt Corrective Action (PCA) norms to government-owned NBFCs from October 1, 2024, aiming to enhance financial discipline and risk management.
Question:
1 What was the gross non-performing asset (GNPA) ratio for non-government NBFCs by December 2023 according to the latest Reserve Bank of India (RBI) report titled “Peeling the Layers: A Review of the NBFC Sector in Recent Times” on September 23, 2024?
- A) 2.4%
- B) 4.5%
- C) 6.9%
- D) 6.3%
