Which sector contribute to higher NPA in 2020?

Which sector contribute to higher NPA in 2020?

Sectors like tourism and recreation-related sectors, commercial real estate, and unsecured retail loans may contribute to higher non-performing loans.

Which sector contributes most to NPA?

Among these five categories, the highest non-performing assets (NPAs) or bad loans in the ‘industrial’ sector stood at Rs 3,33,143 crore, followed by ‘other categories’ loan at Rs 1,77,275 crore, ‘agriculture and allied activities’ Rs 1,11,328 crore, ‘housing loan’ Rs 17,045 crore and ‘education loan’ at Rs 5,626 crore …

Which bank has lowest NPA in India 2020?

Not one PSU bank in the top 5 lenders with lowest NPAs

• IndusInd Bank.
• ICICI Bank.
• Federal Bank.
• Kotak Mahindra Bank. Kotak Mahindra Bank, the third largest Indian private sector bank by market capitalisation, has seen net NPAs consistently below 1.5 per cent.

What is India’s current NPA?

The Gross NPA (GNPA) ratio of PSBs has improved to 11.52 per cent as at September-end 2021 against 11.94 per cent as at June-end 2021 and 12.32 per cent as at September-end 2020, according to the agency.

Which bank has highest NPA in India?

State Bank of India (SBI)
State Bank of India (SBI) topped the list, with its bad loans rising to Rs 1.21 lakh crore as of September 2021 from Rs 74,482 crore in June 2014. As of 30 September 2021, SBI has stressed assets, including restructured standard advances worth Rs1,23,386 crore, out of which about Rs1. 21 lakh crore are its gross NPAs.

Which Indian industry has contributed the list to the problem of heavy NPAs?

Multiple Choice Questions and Answers (MCQs) on Non-Performing Assets For Civil Services. Question 1 : The Indian banking sector is facing the problem of heavy NPAs.

Which sector has maximum exposure to Indian banks?

Five sectors alone account for 60% of the total stressed assets on the books of banks in India. These sectors are steel, power, telecom, infrastructure and textile. By end of FY17, banks had gross non-performing assets (NPAs) of 9.5% of gross advances valuing up to Rs 7.65 lakh crore.

What is NPA of HDFC Bank?

Gross non-performing assets (NPAs) of the private sector lender were Rs 16,346 crore — 1.35 per cent of advances in the second quarter of FY22 — as against Rs 11,304 crore (1.08 per cent) in September 2020.

Who formulates monetary policy in India?

The Reserve Bank of India (RBI)
The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.

When RBI started implementation of NPA guidelines Mcq?

1992
RBI started implementation of NPA guidelines 1992.

Which is the largest bank in India 2020?

HDFC Bank is India’s largest private sector lender by assets. It is the largest bank in India by market capitalisation as of March 2020.

Do NPAs affect bank solvency and profitability?

NPAs affect the operational efficiency, which in turn affects profitability, liquidity and solvency position of banks (Michael, et al, 2006).

What is the importance of NPA in the banking sector?

The stability and sound health of the banking system hence is a key pre-requisite for overall economic development and financial stability. The Non-Performing Assets (NPA) is an important prudential indicator to assess the financial health of the banking sector.

Are NPAs inversely related to agricultural GDP?

The disaggregated empirical analysis reveals that NPAs growth is inversely associated with growth in agricultural GDP, with a lag period of six quarters approximately, viz., 1 per cent decline in agriculture GDP causes 1.2 per cent increase in NPAs (Annex Table 2).

How resilient is the Indian banking system against macroeconomic shocks?

2.16 The resilience of the Indian banking system against macroeconomic shocks was tested through macro-stress tests for credit risk. These tests encompassed a baseline and two (medium and severe) adverse macroeconomic risk scenarios ( Chart 2.6 ). The baseline scenario assumed the continuation of the current economic situation in future 13.