NPAs soar, mutual funds/insurance funding banks rise

Given how sharply the economy has slowed, it’s not surprising the quality of banks’ balance sheets is worsening. RBI says as much in its latest Financial Stability Report (FSR), citing a stress test that reveals a deterioration in their capital position. Indeed, banks accumulated bad assets at a faster pace of nearly 44% last year while they grew their loan books by just 16.3%.

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