Business

Indian Banks are in Trouble, RBI report raises concern

The country’s economy has suffered a major setback due to Corona virus infection. Different sectors have been affected by this virus. The banking sector of the country is also expected to suffer a major setback. According to the latest Reserve Bank estimates, by March 2021, the bad loans of banks, ie NPA, can increase from 8.5 percent to 12.5 percent.

According to the Financial Stability Report (FSR) of RBI, gross NPA will increase significantly and it can go up to 14.7 percent. If we talk about public sector banks, then by March 2021, the gross NPA can increase from 11.3 percent to 15.2 percent.

However, the RBI has refused any threat to the banking system. In the past, the Central Government had announced an Aatmanirbhar Bharat package of about 21 lakh crores. According to experts, most of the burden of this package is going to fall on the banking system. Actually, the government has given most of this package in the form of loan. Along with this, rules have also been made easier regarding the guarantee of loans.

Also Read: What is the difference between Secured and Unsecured Business Loan?

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