The brand new Committee is likewise vetting exposure out-of loans from significantly more than just Rs

Just before brand new onset of the new pandemic, NPAs of banking companies got began to let you know very early signs and symptoms of update, shedding out-of 9.3% from inside the . Nevertheless condition changed pursuing the pandemic hit the benefit. New RBI, in its latest Financial Balance Report (FSR) regarding , estimated that NPAs will likely go up so you’re able to to help you 14.7% by the during the major fret requirements, with a dozen.5% since standard scenario.

However, because of the lingering character for the crisis, banks would be to tools to handle NPAs away from a level going actually beyond the RBI estimates into the major worry standards. Near-name traditional so you’re able to cover NPAs inside distress affairs could be difficult to help you realise and you can banks – whenever you are continuous to evolve their power to lend – shall be open to the continuous inside the handling asset high quality.