Provision Coverage Ratio Current Affairs, GK & News
On December 27, 2019, RBI released Financial Stability Report. The report is biennial and reflects the collective assessment of the Sub-committee of Financial Stability and Development Council. The report said that the non-performing asset ratio of banks is increasing. It was 9.9% in September 2019 and may rise to 9.9% in September 2020. Highlights of ..
Category: Economy & Banking Current Affairs
NPA = Non-Performing Asset Loans and advances given by the banks to its customers is are an Asset to the bank. Just for the sake of simplicity, we can understand that a loan (an asset for the bank) turns as NPA when the EMI, principal or interest component for the loan is not paid within ..
Thanks to RBI, which had withdrawn the requirement for 70% loan loss cover from September 2011. Else, Public sector banks, which have decreased their PCR (Provision Coverage Ratio) in the last one year, would have seen their quarterly profits wiped out, were they asked to maintain PCR of 70%. It is interesting to note that ..