Gross NPAs likely to rise again, says RBI in its Financial Stability Report. Bank jobs lost worldwide highest in four years.
A Long Road Ahead: Indian banks' Gross Non-Performing Assets (GNPA) ratio is likely to rise despite falling for the first time in seven years in March 2019, the RBI said in its half-yearly Financial Stability Report (FSR), released on Friday.
At the same time, the system has become more resilient thanks to recapitalisation programmes and measures taken by the Central Bank, the report argued.
But gross NPA ratio of banks may still increase - from 9.3% in September 2019 to 9.9% by September 2020 - “primarily due to changes in the macroeconomic scenario, a marginal increase in slippages, and the denominator effect of declining credit growth”, the FSR said. BS
You can read the RBI's Financial Stability Report here.
Losing It: 2019 has not been kind to bank employees around the world. As institutions fight slowing economies and adapt digital technologies, banking jobs have become the victims.
The number of job cuts announced this year was the highest in four years. More than 50 lenders have announced plans to cut a combined 77,780 jobs, the majority of them in Europe. This number is the highest since 2015, when 91,448 lost their jobs. The actual number may be even higher since banks eliminate staff without disclosing their plans. ET Business
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