Banking: Where do we go from here?

The gross non-performing assets (NPAs) ratio of scheduled commercial banks has declined from 11.5% in March 2018 to 10.8% in September 2018

We have entered 2019 with the banking sector still in distress. True, there are signs of improvement. The gross non-performing assets (NPAs) ratio of scheduled commercial banks has declined from 11.5 per cent in March 2018 to 10.8 per cent in September 2018. The Reserve Bank of India (RBI) expects the ratio to decline further to 10.3 per cent in March 2019.
 
That does not mean the sector is out of the woods. There is no dearth of businesses that can pose shocks in the year ahead — telecom, aviation, non-banking financial companies (NBFCs), small and medium enterprises (SMEs).