Asset quality of banks improves to decadal high at end-September: RBI

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New Delhi [India], December 27 (ANI): The gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs) fell to a decadal low of 3.9 per cent at end-March 2023 and further to 3.2 per cent at end-September 2023, the Reserve Bank of India said on Wednesday in a report titled Report on Trend and Progress of Banking in India 2022-23...

The improvement in asset quality of banks, measured by their GNPA ratios, that began in 2018-19 continued during 2022-23...

During 2022-23, around 45 per cent of reduction in GNPAs of SCBs was contributed by recoveries and upgradations, the RBI said in the report...

The Indian banking system and non-banking financial companies (NBFCs) remain sound and resilient, backed by high capital ratios, improved asset quality and robust earnings growth..

The gems and jewellery industry has the highest GNPA ratio due to legacy issues.. Further, the RBI report said the consolidated balance sheet of SCBs (excluding regional rural banks) grew by 12.2 per cent in 2022-23, the highest in nine years...

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