Friday, April 4, 2025

Credit to retail, services drives double digit growth in banks: RBI report

Date:

Share post:

Mumbai, Dec 27:The consolidated balance sheet of scheduled commercial banks (SCBs) in 2022-23 expanded by 12.2 per cent, driven by credit to retail and services sectors while deposit growth also picked up, although it trailed credit growth, according to the latest RBI report on banking trends in India released on Wednesday.

The capital to risk weighted assets ratio (CRAR) of SCBs was 16.8 per cent at end-September 2023, with all bank groups meeting the regulatory minimum requirement and the common equity tier 1 (CET1) ratio requirement.

The improvement in asset quality of banks that began in 2018-19 continued during 2022-23 and H1:2023-24, with gross non-performing assets (GNPA) ratio at 3.2 per cent at end-September 2023.

The report which presents the performance of the banking sector, including co-operative banks and non-banking financial institutions, during 2022-23 and 2023-24 so far, also highlights that higher net interest income and lower provisioning boosted net interest margin (NIM) and profitability in 2022-23.

The combined balance sheet of urban co-operative banks (UCBs) expanded by 2.3 per cent in 2022-23, driven by loans and advances, and their capital buffers and profitability improved through 2022-23 and Q1:2023-24.

The consolidated balance sheet of non-banking financial companies (NBFCs) expanded by 14.8 per cent in 2022-23, led by double digit credit growth. Profitability and asset quality of the sector also improved in 2022-23 and in H1:2023-24, even as the sector remained well-capitalised with CRAR higher than the regulatory requirement, the report said

IANS

Related articles

PM Modi urges Bangladesh’s Yunus to avoid rhetoric, protect minorities

Bangkok, April 4: Prime Minister Narendra Modi on Friday raised the issue of safety and security of minorities...

SC orders Yasin Malik to cross-examine witnesses virtually from Tihar

New Delhi, April 4: The Supreme Court on Friday allowed jailed JKLF chief Yasin Malik to cross-examine witnesses...

India in active talks with domestic pharma exporters amid new US tariff threat

New Delhi, April 4: The Commerce Ministry is in active talks with Indian pharmaceutical exporters amid growing concerns...

Rupee strengthens against dollar amid Trump’s reciprocal tariffs

New Delhi, April 4: The Indian rupee witnessed sharp gains on Friday at below 85 against dollar, as...