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  • Two killed in Delhi building collapse; contractor booked. Two bodies were recovered after a building collapsed in Chawri Bazaar. Delhi Chief Minister Rekha Gupta said the contractor had been booked and the concerned junior and assistant engineers suspended
  • Uttar Pradesh voter rolls show a 2.4-crore discrepancy. A difference of approximately 2.4 crore names has been reported between the state's panchayat and rural Assembly voter lists. The Election Commission has ordered the two sets of rolls to be matched
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  • Maaya Rajeshwaran reaches WTA-level quarter-final. The 17-year-old Indian defeated Poland's Weronika Falkowska 6-4, 6-3, becoming the first Indian woman since Sania Mirza in 2012 to reach a quarter-final at a WTA Tour-level singles event
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  • India beat Pakistan 3-2 in SAFF Championship. India defeated Pakistan in a closely contested match, having led 3-0 before conceding two late goals. The victory was reported as a significant result for India's second-string side
  • India beat Japan 4-1 to win a record sixth Asian Champions Trophy. India recovered from an early deficit to defeat Japan in the final at Mohali, extending its record as the tournament's most successful men's team
  • The Supreme Court issued notice to the Centre and the Election Commission on a petition challenging Section 16 of the Chief Election Commissioner and Other Election Commissioners Act, 2023, which grants the CEC and Election Commissioners protection from legal proceedings for acts performed in their official duties. The petition argues that such blanket immunity could leave citizens without an effective remedy for alleged wrongdoing by the Commission
  • The Supreme Court told voters whose names were deleted from Delhi's draft electoral rolls not to be apprehensive about seeking re-enrolment through Form 6, after the Election Commission assured it that such applicants would not be prosecuted merely because their names had appeared in earlier rolls
  • Congress leader Rahul Gandhi opened the party's campaign for the 2027 Punjab Assembly elections with an Insaaf rally in Sangrur, Chief Minister Bhagwant Mann's home district, accusing the AAP government of failing to control drugs, gangster violence and corruption. Congress president Mallikarjun Kharge outlined six commitments, including a drug-free Punjab, protection of farmers, employment for young people and action against corruption
  • Rahul Gandhi accused the AAP government of running Punjab through a remote control from Delhi and questioned Bhagwant Mann's ability to tackle drug abuse, making personal allegations about the Chief Minister's conduct during their time together in Parliament
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Improving Health Of The Banking Sector In India

By Linus Garg
First publised on 2022-12-29 08:38:17

About the Author

Sunil Garodia Linus tackles things head-on. He takes sides in his analysis and it fits excellently with our editorial policy. No 'maybe's' and 'allegedly' for him, only things in black and white.

The health of India's banking sector is continuously improving for the last few years, despite the Covid disruption and the resultant stress on borrowers. RBI's Report on Trend and Progress of Banking in India 2021-22, issued on December 27, highlights the fact. The report shows that credit and deposits have grown at a healthy rate. Credit rose to a 10-year high by September 2022 and the good thing was that both working capital loans and term loans saw healthy growth. Capital adequacy ratios, in shambles after the stress of rising NPAs, have now become healthy. Capital adequacy was 14.1 per cent in 2021. It rose to 15.7 per cent in 2022 and further to 16 per cent in September 2022.The best part is that the share of NPAs is declining every successive year. It was at its peak at 11 per cent in 2017-18 and has dropped to around 5 per cent at the end of September 2022.

That the banking sector has managed to put up such a good show is largely due to the intervention of the RBI in setting things right. It focused on cleaning up the balance sheets of banks and its sustained efforts in this regard have paid handsome dividends. Then, it took wise and timely decisions during the economic disruption caused by the pandemic and that helped both the borrowers and the banks. Since then too, with the world facing a recession, the RBI has been tackling both inflation and growth in equal measure. This is also going to help maintain the overall health of the financial sector.

However, some concerns remain. First is the fact that SMA-0 accounts, where payments are overdue anywhere between 0-30 days, are showing a rising trend. This shows that there is increasing stress in the system and loans need to be monitored well. Then, the recovery rate in the assets through the process of Insolvency & Bankruptcy Code is just 33% of total claims. This again calls for better monitoring of stressed accounts. 

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