Consolidated bank balance sheet expanded, NPA down despite Covid: RBI report



New Delhi, December 28 (UNI) Even though the coronavirus pandemic has wreaked havoc on the economy, the consolidated balance sheets of programmed commercial banks (BSCs) grew in fiscal year 21 and the first signs of pick-up in credit growth is also visible in the current fiscal year. far.

According to a Reserve Bank of India (RBI) report, bank deposits rose 10.1% at the end of September 2021 from 11% a year ago.

The ratio of gross non-performing assets (GNPA) of banks, one of the key indicators of their financial health, fell from 8.2% at the end of March 2020 to 7.3% at the end of March 2021 and again to 6.9 % at the end of September 2021.

The ratio of capital to risk-weighted assets (CRAR) of SCBs increased from 14.8% at end-March 2020 to 16.3% at end-March 2021 and to 16.6% at end-September 2021 , in part thanks to the increase in retained earnings, the recapitalization of public sector banks (PSBs) and the raising of capital in the market by the public sector and private banks.

“Return on Assets (RoA) for SCBs fell from 0.2% at end-March 2020 to 0.7% at end-March 2021, thanks to stable revenues and lower spending,” said the RBI.

The central bank said some of the policy measures it had taken in response to the Covid pandemic had reached pre-announced extinction dates in 2021-2022.

“Some liquidity measures have been removed as a result, while other regulatory measures, including the postponement of the implementation of the Net Stable Funding Ratio (NSFR), restrictions on dividend payments by banks, the postponement of of the implementation of the last tranche of the capital conservation buffer, has been realigned to avoid prolonged forbearance and risks to financial stability while providing targeted support to needy sectors, ”said the banking regulator.

The RBI report showed that the growth in the balance sheet of urban cooperative banks (UCBs) in 2020-2021 was driven by deposits, while moderate credit growth led to an acceleration in investment. Their financial indicators, including financial condition and profitability, have improved.

The profitability of state cooperative banks and central district cooperative banks improved in 2019-2020, while the quality of their assets deteriorated, according to the report.

“The consolidated balance sheet of NBFCs widened in 2020-2021, thanks to the credit and investments of systemically important non-depository NBFCs (NBFC-ND-SI). The quality of their assets and their capital buffers have improved. also improved, “said the RBI.




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