Page 152 - economic_survey_2021-2022

126 Economic Survey 2021-22

Figure 10: GNPA and NNPA ratio

12
11.2
10

8
6.9
ratio 6 6.0

4

2 2.2

0
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Sep-21

GNPA ratio NNPA ratio

Source: RBI
Note: Number for September 2021 is based on offsite returns data

4.18 Restructured Standard Advances (RSA) ratio of SCBs increased from 0.4 per cent to
1.5 per cent during the same period. Overall, the Stressed Advances ratio of SCBs increased
from 7.9 per cent at end-September 2020 to 8.5 per cent at end-September 2021. Various
COVID-19 related dispensations/moratoriums provided with respect to asset quality
contributed towards increase in restructured assets and as a result, stressed advances ratio
for the banking system increased at end-September 2021. Overall, the banking system
appears to have weathered the pandemic shock well even if there is some lagged impact
still in the pipeline.

4.19 GNPA ratio of Public Sector Banks (PSBs) decreased from 9.4 per cent at end-September
2020 to 8.6 per cent at end-September 2021. The Stressed Advances ratio of PSBs increased
marginally from 10.0 per cent to 10.1 per cent during the same period on account of rise in
restructured advances.

4.20 The Capital Adequacy Ratio has continued to improve since 2015-16. Capital to Risk-
weighted Asset Ratio (CRAR) of SCBs increased from 15.84 per cent at end-September 2020
to 16.54 per cent at end-September 2021 on account of its improvement for both public and
private sector banks (Table 3). The improvement in CRAR levels of PSBs was due to capital
infusion by the government alongside fund raising from the markets, while private sector banks
tapped capital from market sources (Figure 11). Based on the capital position as on September
30, 2021, all Public Sector and Private Sector banks maintained the Capital Conservation Buffer
(CCB) well over 2.5 per cent.