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RBI's annual report on Banking
Why is it in the news ?
- The Reserve Bank of India (RBI) released its annual ‘Trends and Progress of Banking in 2017-18’ report on 28 December(Friday).
- The report pointed out to the revival in credit growth in the first half of current financial yea.
- Also the overall improvement in the health of the banks is on the cards, as per the report.
More in the news
Findings of the report:
- The stressed assets of banks had begun to stabilise, albeit at elevated levels.
- The total amount recovered spurted to Rs 528,000 crore as of March 2018 as against Rs 38,500 crore in the same period of last year.
- The credit to industry, which constitutes the major share in the aggregate has picked up steam after depressed conditions in the previous year.
- The balance sheet expansion of commercial banks between 2012-13 and 2017-18 had been slow due to an increase in stressed assets.
- However, during the first half of the FY19 ‘growth returned to the balance sheet bolstered by recovery in loan books.
- Also the banks under Prompt Corrective Action(PCA) have shown lower growth in gross NPAs, relative to non-PCA PSBs.
Source
The Hindu.