Mumbai: The second wave of the pandemic has dented recovery, but with Covid cases abating rapidly, economic activity has improved since May-end, RBI Governor Shaktikanta Das has said.
In a foreword to the financial stability report (FSR) released on Thursday, Das said the hit on banks’ balance sheets and performance due to the Covid-19 pandemic has been much less than what was projected earlier.
According to the stress tests conducted by the RBI, the banking sector’s bad loans or gross non-performing assets (GNPAs) may increase from 7.48% in March 2021 to 9.8% by March 2022 under the baseline scenario, and to 11.22% under a severe stress
