
The Reserve Bank of India in its latest Financial Stability Report stated that scheduled commercial banks (SCBs) gross non-performing assets (GNPA) ratio fell to a multi-year low of 2.8% and the net non-performing assets (NNPA) ratio to 0.6% at end-March 2024.
“SCBs’ credit has continued to expand on the back of robust economic demand conditions and outlook, but primarily driven by services and personal loans,” the report said.
The RBI noted that capital to risk-weighted assets ratio (CRAR) and the common equity tier 1 (CET1) ratio of SCBs stood at 16.8% and 13.9%, respectively, at end-March 2024. SCBs' return on assets (RoA) and return on equity (RoE) are close to decadal highs at 1.3% and 13.8%, it further said.
The RBI noted that the asset quality of banks has continued to improve over the years. “Asset quality continue to improve and capital positions remain robust, supported by capitalisation of high profits, the latter reflected in close to decadal high levels of return on equity and return on assets ratios,” it said.