Banks' balance sheet grows in double digits after 7 years: RBI report
Gross NPA slips to 5%; regulator flags slippages from recast accounts
The health of Indian banks continued to improve in 2021-22 with their balance sheet growing at double digits after a gap of seven years and their asset quality and capital position bettering, the Reserve Bank of India (RBI) said in its annual report on trend and progress of banking in India.
At the same time, the banking regulator flagged the issue of slippages from restructured accounts. “Going forward, it is imperative that banks ensure due diligence and robust credit appraisal to limit credit risk,” the report said.
“If downside risks materialise, asset quality could be affected. Hence, slippages in restructured assets need to be monitored closely,” it said, adding that timely resolution of stressed assets was essential to prevent asset value depletion
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