Fri Dec 27 02:22:57 UTC 2024: ## Indian Banks Report Sixth Consecutive Year of Profitability
**Mumbai, December 27, 2024** – India’s banking sector has reported robust financial health, marking its sixth consecutive year of increased profitability, according to the Reserve Bank of India (RBI). Data released Thursday reveals a return on assets (RoA) of 1.4 percent and a return on equity (RoE) of 14.6 percent for the fiscal year 2023-24, with continued growth in the first half of 2024-25.
The report, “Trend and Progress of Banking in India 2023-24,” highlights a significant decrease in gross non-performing assets (GNPAs) to a 13-year low of 2.7 percent at the end of March 2024, further dropping to 2.5 percent by September 2024. This improved asset quality, coupled with strong capital positions, reflects the overall soundness of the banking system.
Scheduled commercial banks saw a 32.8 percent surge in net profit, reaching ₹3,49,603 crore during the last fiscal year. The consolidated balance sheet of these banks (excluding Rural Regional Banks) experienced a 15.5 percent increase in 2023-24.
The non-banking financial company (NBFC) sector also demonstrated positive trends, with double-digit credit growth, improved asset quality, and strong capital buffers. The GNPA ratio for NBFCs fell to 3.4 percent by September 2024.
The RBI attributes this positive performance to India’s strong macroeconomic fundamentals, which have positively impacted both the banking and NBFC sectors. The report further details the composition of India’s commercial banking sector, comprising various types of banks, including public sector, private sector, foreign, and regional rural banks.
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