Financial Stability Report: RBI

Question 1

A) What is the overview of the report?

B) ___edition of the Financial Stability Report (FSR) was released in June 2023?

Answer 1

• According to the Financial Stability Report (FSR), There is uncertainty in the Global Economy due to rising Geopolitical tension, the fragility of Banking systems and Moderate but rising inflation. Despite rising uncertainty, the Indian Financial System has displayed resilience supported by strong macroeconomic fundamentals.
• 27th edition

Question 2

The CRAR (Capital to Risk Weighted Asset Ratio) of Scheduled Commercial Banks (SCBs) rose to ___% in March 2023, while that of NBFCs stood at___%?

The CRAR of Urban Cooperative Banks rose to__% in March 2023?

The Common Equity Tier-1 (CET-1) ratio of the SCBs rose to ___% in March 2023?

Answer 2

• CRAR of SCBs rose to 17% while that of NBFCs stood at 27.5%
• 16.5%
• 13.9%

Question 3

The Profit After Tax of SCBs registered a growth of ___% in 2022-23?

Answer 3

38.4%

Question 4

The GNPA (Gross Non-Performing Asset) ratio fell to a 10-year low of ___% in March 2023, and the NNPA ratio fell to __%?

The Deposit Insurance and Credit Guarantee Corporation (DICGC) settled ₹____worth of claims in FY2023?

Answer 4

• GNPA ratio fell to 3.9%, while the NNPA ratio fell to 1% of the total loans
• ₹751 crore

Question 5

The Aggregate Deposit growth was at ___% as on June 2, 2023?

SCBs reported a robust credit growth of __% in FY2023?

Answer 5

• 11.8%
• 15.4%

Question 6

RBI conducts a Systematic Risk Survey (SRS) to assess the financial System on which 5 different types of risks?

Answer 6

Institutional risk, Global risk, Financial risk, Macroeconomic risk and General risk

Question 7

The Provision Coverage Ratio (PVR) of SCBs improved from 40.1% in 2016 to ___% in March 2023?

Answer 7

To 74%.

The Provision Coverage Ratio (PVR) is a financial metric used to assess the adequacy of Banks to cover potential losses arising from NPAs. It is the proportion of funds, used to cover potential Losses due to NPAs. Formula for calculating PVR is Provisions for NPAs/Gross NPA * 100

Question 8

The Retail Loans grew at a Compound Annual Growth Rate (CAGR) of ___% from March 2021 to a CAGR of ___% in March 2023?

For the same period, The composition of Secured and Unsecured Loans was changed. The unsecured loans increased from ___% to ___%, whereas secured loans decreased from ___% to ___%?

Although the GNPA ratio of retail loans of SCBs was low at __% in March 2023, the share of special mention accounts (SMA) of SCBs was relatively high at ___% and accounted for a tenth of the retail asset portfolio of public sector banks

The total share of Special Mention Accounts (SMA) in Retail loan was ___%

Unsecured retail loans formed only ___% of the total banking system credit?

Answer 8

• From 13.8% to 24.8%
• Unsecured loans increased from 22.9% to 25.2% and Secured loans decreased from 77.1% to 74.8%
• 1.4%, 7.4%
• 7.3%
• 7.9%

Special Mention Accounts (SMA) is a classification system used by banks and financial institutions to monitor and identify potential problem loans. It has three categories:
SMA-0: Delay of loan by the borrower from 1-30 days
SMA-1: Delay of loan by the borrower from 30-60 days
SMA-2: Delay of loan by the borrower from 60-90 days

If the borrower delays the loan for more than 90 days, it is considered as the NPA (Non Performing Asset).

Question 9

The ECLG scheme was ended on March 31, 2023, answer the following-

About ___% of accounts and ____% of the disbursed amount under the emergency credit line guarantee scheme (ECLGS) have turned into non-performing assets (NPAs)?

The contribution of SCBs in the ECLG was 90% of the total disbursed amount, reaching around ₹___?

Answer 9

• 16%, 5%
• ₹2.91 trillion