MUMBAI, Jan. 22 -- The central board of the Reserve Bank of India (RBI) wants banking system stress tests to include several parameters in addition to non-performing assets (NPAs), a person aware of the matter said.
The board has discussed doing away with the singular focus on NPAs in the bi-annual stress tests for RBI's Financial Stability Report (FSR), the person cited above said on condition of anonymity, adding multiple indicators are needed to identify emerging stress in the system.
In its latest FSR released on 11 January, RBI said gross NPAs could rise to 13.5% under the baseline stress scenario by 30 September 2021, the highest in more than 22 years, up from 7.5% as of 30 September 2020. It is predicted to almost double to 14.8% u...