RBI Released Comprehensive Statistical Data on Indian Banking Sector for 2023-24

In accordance with Section 36(2) of the Banking Regulation Act, 1949, the Reserve Bank of India (RBI) has published the
Report on Trend and Progress of Banking in India 2023-24. The report provides an overview of the performance of the
banking sector, including commercial banks, co-operative banks, and non-banking financial companies (NBFCs), for the financial
year 2023-24 and the first half of 2024-25.

Key Highlights

• Credit Growth Drives Expansion:
  The consolidated balance sheet of scheduled commercial banks (SCBs) saw significant growth in 2023-24, driven by robust credit expansion.
• Strong Capital Buffers:
  • The capital to risk-weighted assets ratio (CRAR) of SCBs stood at 16.8% as of September 2024.
  • All bank groups met the regulatory requirements for CRAR and common equity tier 1 (CET1) ratios.
• Improved Asset Quality:
  • The gross non-performing assets (GNPA) ratio declined to a 13-year low, reaching 2.7% by March 2024.
  • Further improvement was seen with a GNPA ratio of 2.5% by September 2024.
• Rising Profitability:
  • Banks reported their sixth consecutive year of profitability growth in 2023-24.
  • In H1 2024-25, the return on assets (RoA) rose to 1.4%, while the return on equity (RoE) increased to 14.6%.
• Urban Co-operative Banks (UCBs):
  • The UCBs’ combined balance sheet expanded in 2023-24.
  • Asset quality improved for the third straight year, with enhanced capital buffers and profitability.
• Performance of NBFCs:
  • The NBFC sector experienced double-digit credit growth in 2023-24.
  • Asset quality improved, with the GNPA ratio dropping to 3.4% by September 2024.
  • Capital buffers remained robust, keeping the CRAR well above regulatory norms.

The report underscores the resilience of India’s banking and financial sectors, marked by strong credit growth, improved
asset quality, and sustained profitability.