Why is NPA increasing?

There could be a massive rise in Non Performing Assets (NPA’s) due to COVID-19 pandemic. As the economic activity had come to a standstill due to pandemic, the Financial Stability Report (FSR) of the Reserve Bank of India (RBI) had noted that gross NPA ratio of scheduled commercial banks would worsen. You can read about the Non Performing Assets (NPA) – What is the meaning of NPA? [UPSC Economics Notes] in the given link.

Further readings:

1. RBI – Reserve Bank of India [UPSC Indian Economy Notes]
2. Bad Banks – Idea Proposed by Indian Banking Association (IBA) Due to COVID-19