Key Highlights From The RBI Report On Trends And Progress Of Banking In India For FY22: Nirmal Bang

Nirmal Bang Report

Following are the key highlights from the Reserve Bank of India's report on trends and progress of banking in India for FY22: The key takeaways are:

1. consolidated balance sheet - growth came in double digits after seven years,

2. capital to risk (weighted) assets ratio - capital position of scheduled commercial banks remained strong at 16.8% in FY22 versus 16.3% in FY21,

3. asset quality - continued to register improvement, with gross non-performing asset at 5.8% in FY22 compared to the peak of 7.3% in FY21; it further declined to 5% as on H1 FY23.

The consolidated balance sheet of SCBs has witnessed double-digit growth after a gap of seven years. On the liabilities side, deposits growth moderated from the Covid-19 induced precautionary surge. On the asset side, the system reported a pick-up in credit in FY22 and has continued the momentum in FY23. At the same time, investments slowed down compared to FY21. The public sector undertakings still hold a majority share in the consolidated balance sheet, accounting for 62% of total outstanding deposits and 58% of total loans and advances extended by SCBs.

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