Full formBanking & Finance
AQRstands forAsset Quality Review
Full Form of AQR
What is AQR?
Asset Quality Review (AQR) is an exercise initiated by the Reserve Bank of India (RBI) to comprehensively assess the quality of assets held by banks, primarily focusing on identifying stressed loans and non-performing assets (NPAs). Launched in 2015, the AQR aimed to clean up bank balance sheets by requiring banks to classify and provision for bad loans transparently. It involved a deep dive into large loan accounts, examining their repayment capacity and collateral coverage. The AQR process helped reveal the true extent of NPAs in Indian banks, particularly in public sector banks, and led to stricter recognition norms under the Income Recognition and Asset Classification (IRAC) framework. This exercise was pivotal in prompting banks to undergo resolution under the Insolvency and Bankruptcy Code (IBC). The AQR is frequently referenced in banking exams, such as those for RBI Grade B or NABARD, under the topics of financial sector reforms and NPA management.
AQR का फुल फॉर्म
परिसंपत्ति गुणवत्ता समीक्षा
Example
The RBI's Asset Quality Review (AQR) revealed that many banks had underreported their NPAs, necessitating higher provisions and capital infusion.
AQR — frequently asked questions
What is the full form of AQR?
The full form of AQR is Asset Quality Review, a central bank exercise to evaluate the health of banks' loan portfolios.
How did AQR impact Indian banks?
AQR forced Indian banks to recognize and provision for hidden NPAs, leading to cleaner balance sheets and triggering resolutions under the Insolvency and Bankruptcy Code.
Is AQR relevant for RBI Grade B exams?
Yes, AQR is an important topic in RBI Grade B, NABARD, and other banking exams under financial sector reforms and NPA management.