There are three main Ratios which normally Common Bankers at field level used

There are three main Ratios which normally Common  Bankers at field level is unsure these are.

*Slippage ratio* –

This is defined as 

Fresh accretion of NPAs during the year/Total standard assets at the beginning of the year) *100

*Credit costs Ratio*

 This is the amount set aside for bad loans. This is derived by FRESH NPA provision made during the Year divided by average standard Advances .  

*Cost-to-income ratio* 

It is calculated by dividing the operating expenses by the operating income generated i.e.net interest income plus the other income.

Cost-to-income ratio = Operating Expenses/Operating Income

where, Operating Expenses = Employee Cost + Other Operating Expenses

Operating Income = Net Interest Income + Other Income

There are difference projections made by RBI and Big-4, RBI says Banks will have double digit credit growth in FY 2022, whereas McKinsey  has estimated that banks in India could face a potential hit of Rs 12 trillion till 2024 from the fallout of the Covid-19 pandemic — with revenue foregone estimated at Rs 5.5 trillion and loan loss provisions about Rs 6.7 trillion.