BANK SIDBI Grade A (General) Phase I Mock Test 2024 Banking and Financial Institutions Banking sector reforms in India NPA management
Consider the following statements regarding the Provisioning Coverage Ratio (PCR):
1. PCR is used to assess the funds set aside by banks to cover potential losses from NPAs.
2. Higher PCR values indicate lower risk for the financial health of a bank.
3. PCR is calculated as the ratio of provisions made to gross NPAs.
Which of the statements given above is/are correct?
1
Only 1
2
Only 1 and 2
3
Only 1 and 3
4
All of the above
5
None of the above