RBI’s latest financial sector report card highlights drop in NPAs, capital buffers for banks & better asset quality for NBFCs. But new sources of risk, like climate change, have emerged.
Indian banks, regulators, and investors weren’t worried when crises began exploding in US and European banks earlier this year. This resilience has been a long time coming.
A half-yearly report by RBI found NPA levels for both banks & NBFCs have fallen and their profitability has improved but credit delivery in India is still muted compared to peers.
While commercial banks wrote-off Rs 10.09 lakh crore in last five financial years, they have recovered only Rs 1.32 lakh cr — a shade over 13% — from these written-off accounts.
PSBs saw year-on-year rise of nearly 50% in net profit in July-Sept quarter thanks to broad-based rise in loans. But MSME stress, pace of credit & deposit growth will determine future.
An underestimated growth projection could give Modi govt more spending room, while initiatives to improve NPA recovery could prove crucial for India's financial sector.
In 2022, athletes claimed they were asked to wind up training early at Thyagraj Stadium so that the IAS couple could walk their dog. Then came the memes and public outrage.
Instead of buying more Mirages outright in early 2000s, the requirement was tweaked in favour of a medium-weight, multi-role fighter with Mirage-like performance.
Pakistan not only has zero chance of catching up with India in most areas, but will inevitably see the gap rising. Its leaders will offer its people the same snake oil in different bottles.
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