Gaining strength

Improving bank balance sheet will support growth

The last financial year, 2023-24 (FY24), was good for private banks and excellent for public-sector banks (PSBs). Net interest income in aggregate expanded for all banks and net interest margins have been sustained for the most part. Non-interest income too has increased as banks have developed better cross-selling mechanisms and generated more fee income. Across the board, gross non-performing assets (GNPA) have reduced sharply. Net NPAs have also declined. Provisions have been reduced or reversed in many cases, as sticky loans have been recovered, resulting in higher profits and lower credit costs. Interest income has grown 38 per cent year-on-year