Reserve Bank of India has released the 20th issue of the Financial Stability Report (FSR)

Gross Non-Performing Asset (GNPA) ratio of all Scheduled Commercial Banks may increase to 9.9% by September 2020 from 9.3% in September 2019.
The GNPA ratio of public sector banks (PSBs) will increase from 12.7 % in September 2019 to 13.2 % in September 2020 and the GNPA ratio of private banks from 3.9 % to reach 4.2 %. The GNPAs of foreign banks can also rise to 3.1 % from 2.9 %.
Credit growth of Scheduled Commercial Banks’ remained low at 8.7% year-on-year in September 2019, down from 13.2% in March 2019.
Private Sector Banks (PVBs) registered double digit credit growth of 16.5% in September 2019.
Net NPAs (NNPA) of banks fell to 3.7 % in September 2019. This explains the increased provision for NPAs.
The integrated provision coverage ratio (PCR) of banks increased from 60.5 % in March 2019 to 61.5 % in September 2019.
The ratio of banks capital to risk-weighted assets ratio (CRAR) improved from 14.3 % in March 2019 to 15.1 % in September 2019 due to government’s capital infusion of into public sector banks. For public sector banks, the CRAR improved from 12.2 % to 13.5 % during this period.
A non performing asset (NPA) is a loan or advance for which the principal or interest payment remained overdue for a period of 90 days.