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BANKING SYSTEM RESILIENT, POISED FOR GROWTH AMID GLOBAL CHALLENGES

The Daily Guardian

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December 28, 2023

Amidst a highly uncertain outlook for the global environment, the Indian banking system has been well positioned to improve further, with better asset quality, high capital adequacy and robust profitability supported by bright prospects for domestic economic activity.

The consolidated balance sheet of scheduled commercial banks (SCBs) in 2022-23 expanded by 12.2 percent, driven by credit to retail and services sectors while deposit growth also picked up, although it trailed credit growth.

The capital to risk-weighted assets ratio (CRAR) of SCBs was 16.8 percent at end-September 2023, with all bank groups meeting the regulatory minimum requirement and the common equity tier 1 (CET1) ratio requirement, states the Reserve Bank of India’s Report on Trend and Progress of Banking in India 2022-23 released on Wednesday.

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