Question

What does a higher Provisioning Coverage Ratio (PCR)

Q: Answer-What does a higher Provisioning Coverage Ratio (PCR) directly indicate about a commercial banking in...

The Provisioning Coverage Ratio PCR measures the percentage of provisions held against gross NPAs. A higher ratio indicates that the bank has built a solid financial cushion to absorb potential shocks arising from bad loans.

directly indicate about a commercial banking institution?

A The bank is suffering from rapid capital erosion.

B The bank has a higher buffer or financial resilience to absorb future loan defaults.

C The bank's volume of gross NPAs is drastically increasing.

D The bank is expanding its unsecured retail loan portfolio.

E The bank is experiencing a sharp decline in its net interest margin.

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What does a higher Provisioning Coverage Ratio (PCR)

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