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

Banking & Finance | Dated: 03 Jan 2025

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.

🎯 Key Highlights:

  • - 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.

💡 Other Important Facts:

  • (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.

📚 Test Your Knowledge:

Recently, which organization released the report on Trend and Progress of Banking in India for 2023-24?

Correct Answer: RBI

🚀 Quick Recap:

About RBI

  • Governor : Sanjay Malhotra
  • Headquarter : Mumbai