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.
While the Russia-Ukraine war saw the BJP projecting PM Modi as a ‘vishwaguru’ who could end international conflicts, the party has made a nuanced shift in its electoral strategy vis-à-vis the West Asia war.
Report on impact of AI emergence—drawing upon depositions from several ministries—confirms that the developments come in the absence of AI laws or considerations over them.
It’s easy to understand why the government can’t speak the hard truth. When this war ends, as all wars do, India’s interests will lie with both the winner and the loser.
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