These are the main volatile requirements to meet amongst other,
- having a net profit in the last two financial years; and
- having GNPA and NNPA of less than or equal to 3 percent and 1 percent respectively in the last two financial years.
Source: Reserve Bank of India - Notifications
Column 1 | Column 2 | Column 3 | Column 4 |
---|---|---|---|
GNPA | NNPA | PAT | |
FY23 | 2.6% | 1.14% | 574 |
FY24 | 2.52% | 1.12% | 799 |
In my humble, limited knowledge opinion, Equitas will have to keep NNPA below 1% for the next 2 FYs (FY25 and FY26) to be eligible for a universal bank license in FY27.
They should have kept NNPAs below 1% like other SFBs.
It is impossible to know right now whether the next 2 FYs will not have unseen stress events and whether macros will allow them to keep NPAs low. True for all banks.
Subscribe To Our Free Newsletter |