Indian Banks' Balance Sheet Grows In Double Digits: Report

The RBI data reportedly revealed that PSBs estimated at 62% of the deposits of the scheduled commercial banks, while on the other hand on loans, they held 58% market share

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By Teena Jose

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The Reserve Bank of India's annual report on trend and progress of banking in India stated that the health of Indian banks continued to improve in 2021-2022 with their balance sheet growing at double digits after a gap of seven years and their asset quality and capital position bettering, according to a report by BS.

Meanwhile the banking regulator raised up the concern of slippages from restructured accounts, the report further asserted that, "Going forward, it is imperative that banks ensure due diligence and robust credit appraisal to limit credit risk. If downside risks materialize, asset quality could be affected. Hence, slippages in restructured assets need to be monitored closely."

As per the news report, the robust growth in banks' balance sheet, particularly for public sector banks (PSBs) ensured that latter still have the major share in the deposit and advances market. The RBI data reportedly revealed that PSBs estimated at 62% of the deposits of the scheduled commercial banks, while on the other hand on loans, they held 58% market share.

Furthermore, the report also said that the asset quality of Indian banks continued to improve with gross non-performing assets (GNPAs) as a percentage of gross advances further falling in September 2022, to 5 per cent, as compared to 5.8 per cent in March 2022.

"This decrease was led by lower slippages as well as reduction in outstanding GNPAs through recoveries, upgradations and write-offs," added the report.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.

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