Trend And Progress Of Banking In India 2023-24 Report Flashcards
The Reserve Bank of India (RBI) has released the Report on Trend and Progress of Banking in India 2023-
24 under Section ____ of the Banking Regulation Act, 1949.
* It presents the performance of the banking sector, including commercial banks, co-operative
banks and non-banking financial institutions, during 2023-24 and 2024-25 so far.
36(2)
According to RBI’s report, profitability of the commercial banks in India increased for the _____ consecutive
year in 2023-2024.
6th
The banks witnessed a Return on Assets (RoA) of ____and a Return on Equity (RoE) of ____ in
Financial Year (FY) 2024 with profitability remaining robust in the first half of FY25.
In order to close the credit-deposit gap, the banks had to raise their deposit rates and borrow money at higher interest rates.
1.4% ; 14.6%
the interest expense-to-income ratio, increased to ____ in FY24, compared to 52.2% in FY23 leading to a slowed growth rate in operating and net profits.
* At the end of March 2023, there was a total on year rise in net profit of 44.6%, while operating
profit had climbed 18.2%.
57.4%
Net profit of the scheduled commercial banks increased by_____ to Rs 3,49,603 crore during the last fiscal.
- At end-March 2024, India’s commercial banking sector consisted of 12 public sector banks (PSBs), 21 private sector banks (PVBs), 45 foreign banks (FBs), 12 SFBs, six PBs, 43 RRBs, and two LABs.
- Out of these 141 commercial banks, ____were classified as
scheduled banks, while four were non-scheduled.
32.8 per cent ; 137
The report showed that the banks’ gross non-performing assets ratio (NPA), or the proportion of bad assets to total
loans, declined to a 13-year low of ____ at end of September from 2.7% at end-March 2024.
2.5%
In terms of asset quality, gross non-performing
assets (GNPA) declined by ____ year on year to Rs
4.8 lakh crore as of March 31, 2024.
15.9%
Net NPA fell to 0.57% of total loans in September 2024, from 0.62% at end-March 2024.
While the agricultural sector reported the highest GNPA ratio at ____, retail loans had the lowest ratio at 1.2%
6.2%
According to the RBI data, the number of bank frauds witnessed a significant increase of _____ year-on-year in April-September 2024 to 18,461 cases and the amount involved jumped more than eightfold to Rs 21,367 crore as compared to 14,480 cases involving Rs 2,623 crore in FY23.
27 per cent
The share of internet and card frauds in the total stood at ____ in terms of amount and 85.3% in terms of number of cases in accordance to the occurrence of frauds in 2023-24.
44.7%
In 2023-24, the number of fraud cases reported by PVBs accounted for____of the total.
* The total penalty amount more than doubled in 2023-24 to Rs 86.1 crore, led by public and private sector banks.
67.1%
The report showed that the capital to risk-weighted assets ratio (CRAR) of Scheduled Commercial Banks
(SCBs) was ____ in September 2024, with all bank groups meeting the regulatory minimum requirement
and the common equity tier 1 (CET1) ratio requirement.
16.8%
- The consolidated balance sheet of SCBs, excluding regional rural banks, increased
by 15.5% during 2023-24 wherein share of PSBs fell to 55.2% while that of PVBs increased
to 37.5%.
- The consolidated balance sheet of SCBs, excluding regional rural banks, increased
- The bank’s liquidity coverage ratio (LCR) fell from 135.7 per cent in September 2023 to 128.5 per cent in September 2024
i.According to the report. Unified Lending Interface (ULI), Reserve Bank of India’s (RBI) Unified Payment
Interface (UPI)-like digital public infrastructure in lending space, has provided over 600,000
loans worth Rs _____.
* Out of this, about 160,000 loans amounting Rs 14,500 crore are to micro, small, and medium
enterprises (MSMEs).
27,000 crore
Moreover, ____ loan segments have been introduced on the ULI platform, including kisan credit card, digital
cattle, MSME (unsecured), housing, personal, tractor, micro business, vehicle, digital gold, e-Mudra, pension and dairy maintenance loans.
12
The RBI data reported that PVBs have met priority sector lending (PSL) targets, including sub-targets for
major heads in 2023-24, particularly in agriculture and have done better than PSBs.
ii.The total trading volume of priority sector lending certificates (PSLCs) increased to _____ in FY24,
primarily led by PSLC-General. Among the four PSLC categories, the small and marginal farmers category
registered the highest trading volume.
* In the past five years, PVBs have emerged as major sellers of PSLCs accounting for 49% of total sales in FY24 as compared with 21% in the case of PSBs
26%
For the public sector, private and foreign banks, the target is _____ of adjusted net bank credit (ANBC) or credit equivalent of off-balance sheet exposure, whichever is higher.
ii.For small finance banks, the target is higher at 75%.
40%
i.The RBI report showed that loans and advances of non-banking financial institution (NBFC) increased
by ____ in FY24, crossing the previous year’s growth of 17.4%.
ii.NBFCs have sourced funding from bank (42.7%) in March 2024. non-convertible debentures
(NCDs), Commercial paper borrowings and external commercial borrowings (ECBs) which represented
57.5% of foreign funding.
18.5%
