MUMBAI: Despite improvement in asset quality, financial institutions, including banks, need to proactively undertake stress testing of their loan books to examine loss absorption limits and take steps to improve them, if required, RBI deputy governor M Rajeshwar Rao said on Thursday.
The gross non-performing assets (GNPAs) and net NPAs of banks improved to 5.97 per cent and 1.7 per cent as of March 31, 2022, from 9.23 per cent and 3.66 per cent as of September 2019, respectively, he said.
