<\/p>\n
\u201cMacro stress tests for credit risk indicate that the GNPA ratio of all SCBs may increase from 8.5% in March 2020 to 12.5% by March 2021 under the baseline scenario; the ratio may escalate to 14.7% under a very severely stressed scenario,\u201d the report read. <\/p>\n
It is difficult to accurately assertion the exact nature of the six-month loan moratorium on the quality of banking<\/a> asset. But the stress tests conducted indicate that the GNPA ratio of all SCBs (scheduled commercial banks) may increase from 8.5% in March 2020 to 12.5% by March 2021 under the baseline scenario (see chart below). However, if the macroeconomic environment worsens further, the ratio may escalate to 14.7% the regulator indicated.<\/p>\n