Teaching UGC NET Mock Test Series 2025 (Paper 1 & 2) Agriculture Officer Introduction To Agriculture and Crop Agriculture Economics
Comprehension Passage
With the decline in GNPAs, the capital position of NBFCs also remains robust, with a CRAR of 27.4 per cent in end-September 2022, slightly lower than 27.6 per cent in March 2022. However, it remains well above the regulatory requirement. The decline of 20 bps was mainly because of an increase in RWA as lending picked up. The RoA has recouped over successive half-years. RBI’s stress test to assess the resilience of the NBFC sector to credit risk shocks for a sample of 152 NBFCs reveals that the number of NBFCs that would fail to meet the minimum regulatory capital requirement of 15 per cent stood at 8 per cent under the baseline scenario. It increases to 10 per cent and 13 per cent under medium and severe stress scenarios, respectively. Credit extended by NBFCs is picking up momentum, with the aggregate outstanding amount at ₹31.5 lakh crore as of September 2022. NBFCs continued to deploy the largest quantum of credit from their balance sheets to the industrial sector, followed by retail, services, and agriculture. Loans to the services sector (share in outstanding credit being 14.7 per cent) and personal loans (share of 29.5 per cent) registered a robust double-digit growth.
Did the Capital to Risk Weighted Assets Ratio (CRAR) increase or decrease from March 2022 to September 2022?
1
The CRAR increased
2
The CRAR decreased.
3
CRAR same
4
None of the above