Q. In context of banking what is PCR?
Answer: Provision coverage ratio
Notes: PCR stands for Provision Coverage Ratio. It is a financial metric used in banking to assess the adequacy of provisions made for non-performing assets (NPAs). A higher PCR indicates that a bank has set aside sufficient funds to cover potential losses from bad loans, reflecting its financial health. As of 2021, many Indian banks aimed for a PCR of over 70% to ensure stability against defaults.