Mumbai: The profitability of Indian banks improved for the sixth consecutive year in 2023-24. The non-performing assets (NPAs) of Indian banks also declined to a 13-year low of 2.7 per cent. The Reserve Bank of India (RBI) revealed this on its report on Trend and Progress of Banking in India 2023-24.
‘Banks’ profitability rose for the sixth consecutive year in 2023-24 and continued to rise in H1:2024-25 with the return on assets (RoA) at 1.4 per cent and return on equity (RoE) at 14.6 per cent,’ said the apex bank.
The gross non-performing assets (GNPA) ratio falling to its lowest in 13 years at 2.7 per cent at end-March 2024 and 2.5 per cent at end-September 2024. The net bad loans of banks fell to 0.57 per cent of total loans at September-end, from 0.62 per cent at end-March. The GNPA ratio of NBFCs dropped to 3.4 per cent at end-September 2024.
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The net profit of the scheduled commercial banks increased by 32.8 per cent to Rs 3,49,603 crore during the last fiscal. The consolidated balance sheet of the scheduled commercial banks, excluding RRBs, increased by 15.5 per cent during 2023-24, as compared with 12.2 per cent during 2022-23.
At end-March 2024, India’s commercial banking sector consisted of 12 public sector banks (PSBs), 21 private sector banks (PVBs), 45 foreign banks (FBs), 12 SFBs, six PBs, 43 RRBs, and two LABs. Out of these 141 commercial banks, 137 were classified as scheduled banks, while four were non-scheduled.
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