According to the RBI, the gross NPA ratio of all scheduled commercial banks may increase from 7.5% in September 2020 to 13.5% by September 2021, and even escalate to 14.8% in severe stress scenario.
While directly mum on inflation and growth, the RBI’s latest monetary policy report warns that Covid-19 would impact economic activity in India through lockdowns and slowing global trade and growth.
Advance estimates from the National Statistical Office (NSO) peg India’s GDP to grow at 5% in FY20 as compared to FY19’s 6.8%; manufacturing is projected to grow just 2%.
