Despite the recession in the world, the health of Indian banks improved, RBI gave this important report.

Despite the recession in the world, the health of Indian banks improved, RBI gave this important report. recession in the world Despite this, the health of Indian banks has improved. In fact, the bad loans of the bank have come down and the balance sheet has strengthened. The Reserve Bank of India (RBI) has given this information in a report. RBI released the ‘Trends and Progress of Banking in India’ report for the financial year 2021-22 on Tuesday. According to this, in September 2022, the GNPA of the banks came down to five percent of the total assets. It reached the highest level after the asset quality review of banks in the financial year 2017-18. The report says that at the end of the financial year 2021-22, the GNPA of banks stood at 5.8 percent.

Global conditions can affect

The size of gross non-performing assets (GNPAs) ie bad loans of Indian banks came down to 5 per cent in September but the prevailing macro-economic conditions could impact the health of lenders. During this period, write-down of loans of public sector banks was a major reason for the decline in GNPA, while in the case of private banks, the situation improved due to upgrading of loans. The steady decline in banks’ GNPAs over the past few years has been attributed to the reduction in loan defaults and steps like recovery and write-off of outstanding loans. Although the restructured asset ratio increased by 1.1 percentage points for all borrowers and 0.5 percentage points for large borrowers, the debt restructuring plan paved the way for helping individuals and small businesses.

advice not to do any negligence

The increase in credit to retail businesses has reduced dependence on large borrowers. However, the RBI report advises not to be negligent in view of the current economic situation. According to the report, “While the Indian banking sector currently remains strong on the back of improved asset quality and strong capital base, policy makers need to be mindful of the rapidly changing macro-economic environment as these regulated entities can affect the health of The report says that unlike Indian banks, the GNPA of foreign banks increased from 0.2 percent to 0.5 percent in FY 2021-22.