SME Times is powered by   
Search News
Just in:   • Adani Group to invest Rs 57,575 crore in Odisha  • 'Dollar Distancing' finally happening? Time for India to pitch Rupee as credible alternative: SBI Ecowrap  • 49% Indian startups now from tier 2, 3 cities: Jitendra Singh  • 'India ranks 3rd in global startup ecosystem & number of unicorns'  • LinkedIn lays off entire global events marketing team: Report 
Last updated: 21 May, 2024  

bank-THMB.jpg Banking sector turnaround

Bank Logo generic
   Top Stories
» 49% Indian startups now from tier 2, 3 cities: Jitendra Singh
» 'India ranks 3rd in global startup ecosystem & number of unicorns'
» Tripura exported over 9K tonnes of pineapples in 2 years
» CPI inflation eases to 6.71% in July, IIP falls to 12.3%
» Rupee depreciates 12 paise to close at 79.64 against US dollar
Staff Reporter | 21 May, 2024

Net profit of the Indian banking sector for the first time crossed Rs 3 lakh crore in 2023-24, surpassing Rs 1.1 lakh crore profit of IT services - traditionally the country’s most profitable sector in recent times. Cumulative net profit of public sector banks grew 34 percent, achieving a record high of Rs 1.4 lakh crore while private sector banks saw their net profit increasing by 42 percent to nearly Rs 1.7 lakh crore. These figures are impressive.

Prime Minister Narendra Modi has praised this "remarkable" turnaround in the health of the banking sector, adding that when the NPA government came to power, Indian banks were reeling with losses and high NPAs and their doors were closed for the poor. He pointed out that the government worked on the strategy of recognition, resolution and recapitalisation, leading to comprehensive reform of the banking sector.

Notably, gross non-performing asset ratio of scheduled commercial banks reduced by 21.1 percent y-o-y to Rs. 4.85 lakh crore as of December 31, 2023. No doubt, lower slippages, steady recoveries and write-offs contribute to this decreasing bank NPA, but at the same time it must be admitted that several steps by the government and the RBI - including a capital infusion of 3.5 lakh crore and the Insolvency and Bankruptcy Code of 2016 – have played a key role here.

NPA has remained a significant problem for banks for a long time with Indian banks suffering from a twin balance sheet problem, but now with a clean balance sheet, we can expect the Indian banking sector to provide higher support to the country’s economic growth. At the same time, with declining NPA of banks, we can expect further improvement in the quality of their MSME portfolio.

I invite your opinions.

Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 13 Aug, 2022
  Daily Poll
PM Modi's recent US visit to redefine India-US bilateral relations
 Can't say
  Commented Stories
» GIC Re's revenue from obligatory cession threatened(1)
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter