Bank lending to retail, services sectors grew by double digits: RBI report
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Mumbai (Uttam Hindu News): The consolidated balance sheet of scheduled commercial banks (SCBs) grew by 12.2 per cent in FY 2022-23, driven by credit to retail and services sectors, while deposit growth also picked up, although it lagged behind credit growth. Is. This information was given in the latest RBI report released on Wednesday on banking trends in India.
SCB’s risk weighted assets ratio (CRAR) at the end of September 2023 stood at 16.8 per cent, with all bank groups meeting the regulatory minimum requirement and the Common Equity Tier 1 (CET1) ratio requirement. The improvement in banks’ asset quality that started in 2018-19 continued during 2022-23 and H1:2023-24, with the gross non-performing assets (GNPA) ratio at the end of September 2023 at 3.2 per cent.
The report which presents the performance of the banking sector, including co-operative banks and non-banking financial institutions, so far during 2022-23 and 2023-24, also highlights that higher net interest income and lower provisioning have impacted the net interest margin (NIM ) and boosted profitability in 2022-23. The combined balance sheets of urban co-operative banks (UCBs) grew by 2.3 per cent in 2022-23, driven by loans and advances and improvement in their capital buffers and profitability during Q1 of 2022-23 and 2023-24.
Consolidated balance sheets of non-banking financial companies (NBFCs) are expected to expand by 14.8 per cent in 2022-23 due to double-digit credit growth. Sector profitability and asset quality also improved over 2022-23 and H1 2023-24, even as the sector remained well-capitalized with CRAR higher than the regulatory requirement, the report said.
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