Banks’ gross NPA ratio (GNPA) may increase to 10.8 per cent by March
2018 and further to 11.1 per cent by September 2018, according to RBI’s
Financial Stability Report. The banking regulator however, feels that
stress in the banking sector may be bottoming out, which comes as a good
news for banks. The other positive news is that credit growth of
scheduled commercial banks has shown an improvement between March and
September 2017.
The gross non-performing advances (GNPA) ratio of banks increased
from 9.6 per cent to 10.2 per cent between March and September 2017.
Private sector banks (PVBs) registered a higher increase in GNPAs of
40.8 per cent as compared to their public sector counterparts (17.0 per
cent).
The report further says that financial savings in the form of mutual
funds (MF) investments and pension schemes not only continued to grow,
but, are also getting broad-based in terms of the spatial distribution
and investor profile. The financial stability report also dwells upon demonetisation and
says that the withdrawal of Rs 500 and Rs 2000 notes had a significant
impact on financial inclusion.
The total number of savings bank deposit accounts post-demonetisation
increased from 504 million in October 2016 to 533 million by March
2017, while the outstanding amount in such accounts rose from 732
billion to 976 billion during the corresponding period, a 33 per cent
increase.
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