NPA of Public Sector Banks expected to be decline to 9 per cent in 2020

Under the baseline scenario, Public Sector Banks' (PSBs) gross Non-Performing Asset (NPA) ratio expected to be decline from 9.3 per cent In march 2019 to nine per cent in March 2020, macro-stress tests for credit risk indicated, RBI mentioned in its report on Thursday. 

Here what all RBI's FSR report says about Financial institutions and sector:

-In a recent Financial Stability Report (FSR) of RBI, it mentioned that Provision Coverage Ratio (PCR)  of all scheduled commercial banks (SCBs) rose sharply to 60.6 per cent in March 2019 from 52.4 per cent in September 2018.
-The increase of PCR of all SCBs will increase the resilience of the banking sector, apex bank said.
-The report mentioned that, macro-stress tests for credit risk indicate that under the baseline scenario, SCBs’ gross NPA ratio may decline from 9.3 per cent in March 2019 to 9.0 per cent in March 2020.
-Credit growth of scheduled commercial banks (SCBs) picked up, with public sector banks (PSBs) registering near double-digit growth. Capital adequacy of the SCBs improved after the recapitalisation of PSBs, report added. 
-With the bulk of the legacy NPAs already recognised in the banking books, the non-performing assets (NPA) cycle seems to have turned around, the RBI said.

"Patting the PSU banks on their backs with credit growth posting near double-digit growth, capital adequacy improvement, turn around of NPA cycle and rise in provision coverage ratio of to cover NPAs and fall in gross NPA ratio, the RBI said credit growth is nearing double digits," IANS report mentioned.