| Syllabus: GS-III; Subject: Economy, Topic: Banking and Financial Intermediaries, Issue: NPAs |
Context: Care Ratings report on Indian banks’ non-performing assets.
Synopsis:
- Gross non-performing assets (GNPA) refers to the total amount of money owed on to banks that are considered past due for a specific period, typically 90 days or more.
- GNPA is expected to reach 2.1% by Financial Year 2025.
- Risks: High-interest rates, regulatory changes, liquidity, global issues.
- Factors: Recoveries, write-offs, reduced slippages, asset reconstruction.
- Monitoring needed for unsecured personal loans, and restructured accounts.
Prelims Connect(Institutions in news)
| CARE Ratings:·       Role: CARE Ratings is a credit rating agency in India.
·       Credit Ratings: They provide credit ratings for corporates and assist investors in making informed decisions. ·       Impact: Their ratings influence interest rates on bank loans and bond. ·       Regulated by the Securities and Exchange Board of India (SEBI). |
