![Has Covid-19 made PSBs more vulnerable?](https://images.assettype.com/fortuneindia%2F2021-01%2F71f5ee06-7f8a-4326-a392-f9b5ad88b1d6%2FBig_Idea_1.jpg?w=300&q=95)
Has Covid-19 made PSBs more vulnerable?
While Indian banks' improved financial metrics do not fully reflect the impact of the Covid-19 pandemic, the under–capitalised PSBs are likely to remain risk averse and lose market share.
While Indian banks' improved financial metrics do not fully reflect the impact of the Covid-19 pandemic, the under–capitalised PSBs are likely to remain risk averse and lose market share.
According to the RBI, the gross NPA ratio of all scheduled commercial banks may increase from 7.5% in September 2020 to 13.5% by September 2021, and even escalate to 14.8% in severe stress scenario.