RBI Warns of Rising NPAs and Asset Quality Concerns in Indian Banking by 2026 - PRESS AI WORLD
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RBI Warns of Rising NPAs and Asset Quality Concerns in Indian Banking by 2026

share-iconTuesday, December 31 comment-icon3 weeks ago 10 views
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indiatimesINDIATIMES
RBI Warns of Rising NPAs and Asset Quality Concerns in Indian Banking by 2026

Credited from: INDIATIMES

  • Indian banks' gross non-performing assets (NPAs) remain low at 2.6% as of September 2024, but are projected to rise to 3% by March 2026.
  • RBI's stress test indicates NPAs could increase to 5% under adverse conditions, signaling potential vulnerabilities in the banking sector.
  • Concerns have been raised about increasing write-offs, particularly in private sector banks, which could mask true asset quality issues.
  • The capital to risk-weighted assets ratio (CRAR) for scheduled commercial banks is expected to decline slightly, but no bank is poised to fall below the minimum requirement.
  • RBI highlights risks across sectors including microfinance and equity valuations, alongside global concerns related to tokenisation in financial markets.

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