RBI releases report on Trend and Progress of Banking in India 2023-24.

Banking & Finance

The Reserve Bank of India (RBI) has published the "Report on Trend and Progress of Banking in India 2023-24" in accordance with Section 36(2) of the Banking Regulation Act, 1949. This report provides a comprehensive overview of the performance of the banking sector, encompassing commercial banks, cooperative banks, and non-banking financial institutions, for the financial year 2023-24 and the initial period of 2024-25.


      - Bank profitability improved for the sixth consecutive year in 2023-24, with gross NPAs declining to a 13-year low of 2.7%, according to RBI data released on December 27, 2024.

      - India's strong macroeconomic fundamentals boosted the performance and stability of the domestic banking and non-banking financial sectors.

      - Banks' profitability increased for the sixth consecutive year in 2023-24, with Return on Assets (RoA) at 1.4% and Return on Equity (RoE) at 14.6% in H1:2024-25.

Main Point :-   (i) The Gross Non-Performing Assets (GNPA) ratio fell to a 13-year low of 2.7% by the end of March 2024 and further declined to 2.5% by the end of September 2024.

      (ii) Banks maintained a satisfactory capital position, reflected in key indicators such as the leverage ratio and Capital to Risk Weighted Assets Ratio (CRAR).

(iii) Non-Banking Financial Companies (NBFCs) experienced strong credit growth, further strengthening their balance sheets and improving credit quality. 6. NBFCs recorded improved profitability, enhanced credit quality, and maintained satisfactory capital buffers.
About RBI

Governor : Sanjay Malhotra
Headquarter : Mumbai
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