Finance ministry counters RBI, says stress in banking sector declining

According to the FSR, the regulator conducted macro stress tests for credit risks to assess the banking system's resilience to macroeconomic shocks under baseline conditions

The finance ministry on Saturday said the overall stress in the banking sector was declining, a day after the Reserve Bank of India (RBI) said in a report that the gross non-performing asset (NPA) ratio of banks was set to increase.
 
“It (the RBI’s report) is contrasting its earlier report released a few days back, which showed that NPAs are on a declining trend. You should also look at the stressed assets to total assets ratio, which has come down significantly. Further, SMA (special mention accounts)-1 and SMA-2 have come down drastically. So we are on a path of