Banking for growth

Financing of NBFCs must be monitored

The biggest takeaway from the “Report on Trend and Progress of Banking in India, 2022-23”, released by the Reserve Bank of India (RBI) this week, is that the Indian banking system is in its best position in the last decade, with gross non-performing assets (GNPAs) declining to a 10-year low. GNPAs of scheduled commercial banks declined to 3.9 per cent at the end of March 2023, and further to 3.2 per cent in September 2023. It is important to note that the Indian banking system came under significant stress in the early part of the last decade because of both