RBI’s Analysis Report on Trend and Progress of Banking in India 2022-23

• The annual performance report of the Indian banking sector, compliant with Section 36(2) of the Banking Regulation Act, 1949, presents a comprehensive analysis of the sector’s achievements and challenges. It encompasses cooperative banks and Non-Banking Financial Companies (NBFCs), providing insights into their contributions to the country’s economic framework.
• SCBs have experienced significant growth, with their combined balance sheets expanding by 12.2% in the fiscal year 2022-23, marking a nine-year high. This growth is attributed mainly to credit expansion in the retail and services sectors.
•  Additionally, SCBs have strengthened their capital buffers and asset quality, with the Gross Non-Performing Assets (GNPA) ratio reaching a ten-year low of 3.9% by March 2023 and further dropping to 3.2% by September 2023. Remarkably, no bank was under the prompt corrective action (PCA) framework by March 2023, indicating improved health of the banking sector.
• NBFCs have shown remarkable growth and improvement in asset quality, with their combined balance sheets growing by 14.8% in 2022-23. The sector has witnessed a significant credit expansion, particularly in unsecured loans, micro-finance, and MSME loans. The Gross Non-Performing Assets (GNPA) ratio for NBFCs declined to 4.1%, showcasing an improvement in asset quality.

Also Read: Awards: Weekly Current Affairs Bitbank (January 1 to 7, 2024): Which company won the CII National Award for Excellence in Water Management and has set a goal to become 500% water-positive by 2025?

                         >> Download Current Affairs PDFs Here

                              Download Sakshi Education Mobile APP

Published date : 09 Feb 2024 04:47PM