Presenting the present picture of the banking sector, the RBI said that bad loans could reach 12.2 percent of the total advances of banks by 11.6 percent in March 2018, by the end of the current financial year. In its Financial Stability Report (FSR), the RBI said that the current crisis of banking sector can be sustained because the gross NPA (GNPA) ratio will be further increased.

In its report, the RBI said, "The macro-stress test indicates that the SCB (Scheduled Commercial Bank) GNPA ratio increased from 11.6 percent of March 2018 to 12.2 percent by March 2019 under the baseline scenario of the current macroeconomic outlook."

Pointing to the Quick Correctional Action (PCA) against the country's leading 11 government banks, the RBI said that the condition of their GNPA can be worse, which increased from 21 percent in March 2018 to 22.3 percent by the end of the current financial year. 

Of these 11 government banks, there can be a shortage of funds related to the required minimum CRAR (Risk-weighted assets ratio) of 9% in 6 banks. Those 11 banks who are facing PCA proceedings due to trapped loans, IDBI Bank, UCO Bank, Central Bank of India, Bank of India, Indian Overseas Bank, Dena Bank, Oriental Bank of Commerce, Bank of Maharashtra, United Bank of India, Corporation Bank and Allahabad Bank are included.

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