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Trend and Progress of Banking in India Report 2022-23

Trend and Progress of Banking in India Report 2022-23 mind map
Recent News
Released on December 27, 2023
When
Covers 2022-23 and 2023-24 (so far)
Why
Statutory publication under Section 36 (2)
Banking Regulation Act, 1949
What
Performance of banking sector
Includes
Scheduled Commercial Banks (SCBs)
Co-operative Banks
Non-Banking Financial Institutions (NBFCs)
Key Metrics
Consolidated balance sheet of SCBs
Expanded by 12.2%
Driven by credit to retail, services sectors
Capital to Risk Weighted Assets Ratio (CRAR)
16.8% at end-September 2023
Meets regulatory requirements
Gross Non-Performing Assets (GNPA)
Improved to 3.2% at end-September 2023
Net Interest Margin (NIM) and Profitability
Higher due to net interest income, lower provisioning
Urban Co-operative Banks (UCBs)
Balance sheet expanded by 2.3%
Driven by loans and advances
NBFCs
Balance sheet expanded by 14.8%
Credit growth and improved asset quality
Where
Across India
Who
Reserve Bank of India
Central banking institution of India
Manages currency, monetary policy
Scheduled Commercial Banks (SCBs)
Major banking sector in India
Co-operative Banks
Provide financial services to rural areas
Non-Banking Financial Institutions (NBFCs)
Offer banking services without meeting legal definition of a bank
How
Through various banking and financial measures
Significance
Improved asset quality
Higher capital adequacy
Enhanced profitability
Challenges
Cyber threats
Unsecured retail loans
Over-reliance on bank funding by shadow banks
Way Forward
Vigilance around risks
Prudent risk management
Strong governance practices

The “Trend and Progress of Banking in India” Report for 2022-23 by the RBI provides an extensive analysis of the banking sector’s performance in India. It highlights the expansion and improvement in various areas such as the balance sheets of commercial and co-operative banks, asset quality, and profitability. The report also emphasizes the challenges such as cyber threats and the need for prudent risk management and governance practices to ensure resilient and inclusive growth in the banking sector.

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