SME Times is powered by   
Search News
Just in:   • Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia  • Europe facing earlier, stronger heatwaves: Climate scientist  • India and Namibia sign two MOUs in fields of health and entrepreneurship  • PM Modi arrives in Delhi after concluding 'productive and successful' 5-nation tour  • ASEAN to keep on consensus, inclusivity: Malaysian official 
Last updated: 21 May, 2024  

bank-THMB.jpg Banking sector turnaround

Bank Logo generic
   Top Stories
» Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia
» Piyush Goyal holds talks with Malaysian minister on review of ASEAN trade pact
» India and OPEC have a unique and symbiotic relationship: Hardeep Puri
» SIP inflows hit all-time high in June, total AUM for equity MF at Rs 74.41 lakh crore
» India set to explore over 2.5 lakh sq kms area in one of largest offshore energy efforts
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 :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter