RBI publishes its Report on Trend and Progress of Banking
NATIONAL: The Reserve Bank of India (RBI) has published its Report on Trend and Progress of Banking in India for the fiscal year 2024-25 that illustrates the banking sector's resilience, characterized by solid growth in balance sheets, enhanced asset quality and healthy profitability metrics. Despite a deceleration in growth rates compared to the previous fiscal year, both deposits and credit for scheduled commercial banks (SCBs) expanded at double-digit rates during this period.
The report highlights a significant improvement in asset quality, with the gross non-performing assets (GNPA) ratio decreasing to a historic low of 2.2% by the end of March 2025 and further declining to 2.1% by the end of September 2025. This decline reflects effective stress resolution measures and improved credit enforcement practices.
Profitability indicators also remained strong, with return on assets (RoA) documented at 1.4% and return on equity (RoE) at 13.5% for FY25, further highlighting the improved earnings landscape within the banking sector.
Moreover, the RBI noted a consistent enhancement across various segments of the wider financial system. This comprehensive report underscores the overall stability and growth potential of the Indian banking sector amidst moderating growth rates.
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The report highlights a significant improvement in asset quality, with the gross non-performing assets (GNPA) ratio decreasing to a historic low of 2.2% by the end of March 2025 and further declining to 2.1% by the end of September 2025. This decline reflects effective stress resolution measures and improved credit enforcement practices.
Profitability indicators also remained strong, with return on assets (RoA) documented at 1.4% and return on equity (RoE) at 13.5% for FY25, further highlighting the improved earnings landscape within the banking sector.
Moreover, the RBI noted a consistent enhancement across various segments of the wider financial system. This comprehensive report underscores the overall stability and growth potential of the Indian banking sector amidst moderating growth rates.
https://indigenousherald.com/