Question

Evaluate the following statements about the RBI's Financial Stability Report (FS

  • R 2026: I. The GNPA ratio of scheduled commercial banks declined to a multi-decadal low of 1.8% in March 2026, with broad-based improvement across public sector banks, private sector banks, and foreign banks. II. FSR 2026 stress tests indicate that under a severe adverse scenario, the GNPA ratio of SCBs could rise to approximately 3.8%-4.1% by March 2028 — while still remaining manageable, indicating system-wide resilience. Which of the above is/are correct?
A Only I
B Only II
C Both I and II
D Neither I nor II
E I is correct, II is overstated
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