Full formBanking & Finance
GCRstands forGross Collection Ratio
Full Form of GCR
What is GCR?
Gross Collection Ratio (GCR) is a key performance metric used by banks and financial institutions in India to measure the efficiency of their loan recovery efforts. It represents the total amount of cash collected from borrowers as a percentage of the total amount due during a specific period, including both principal and interest. A higher GCR indicates that the bank is effectively recovering outstanding loans, which directly impacts its profitability and asset quality. In India, GCR is particularly important for assessing the health of retail loans, such as home loans, auto loans, and personal loans, as well as agricultural and microfinance portfolios. Banks regularly report GCR to the Reserve Bank of India (RBI) as part of regulatory compliance and internal risk management. It is also used by analysts and investors to evaluate a bank's operational efficiency and credit discipline. Understanding GCR is crucial for students preparing for banking sector exams like IBPS PO, SBI PO, and RBI Grade B, where questions on financial ratios are common.
GCR का फुल फॉर्म
सकल संग्रह अनुपात
Example
The bank's quarterly report showed a GCR of 97.5%, reflecting strong recovery from its retail loan portfolio despite the economic slowdown.
GCR — frequently asked questions
What is the full form of GCR?
The full form of GCR is Gross Collection Ratio, a metric used by banks to measure the percentage of total dues collected from borrowers during a specific period.
How is GCR calculated in Indian banks?
GCR is calculated by dividing the total cash collected (including principal and interest) by the total amount due during the same period, then multiplying by 100 to get a percentage.
Why is GCR important for banking exams in India?
GCR is important because it tests candidates' understanding of asset quality and recovery performance, which are key topics in exams like IBPS PO, SBI PO, and RBI Grade B.