RBI wary of recast MSME portfolio

BANKS' GROSS NPAS AT SIX-YEAR LOW

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THE GROSS NON-PERFORMING assets (GNPA) ratio of banks has come down to a six-year low in March 2022, but the Reserve Bank of India (RBI) has cautioned that the 46,186-crore MSME restructured portfolio has the potential to create stress.

The central bank, in its Financial Stability Report (FSR) released on Thursday, observed that bad assets in the MSME sector are relatively high, though they have moderated from 11.3% in September 2021 to 9.3% in March 2022. The restructuring of portfolios to the tune of ₹46,186 crore constitutes 2.5% of the total advances under the May 2021 scheme.