India’s Leading BFSI & FinTech Companies 2024

[ BANKING SECTOR OVERVIEW ] India’s Leading BFSI and FinTech Companies 2024 8 Bank credit growth (%) at decadal high in FY23 Source: RBI, Dun & Bradstreet Research GNPA of SCBs falls to a decadal low (%) Source: RBI, Dun & Bradstreet Research The higher net interest income and lower provisioning boosted net interest margin and profitability in FY2023. The net interest margin of SCBs remained high at 3.8% in March 2023 as compared to 3.4% in March 2022 with growing net interest income and other operating income. Profitability of SCBs continued to improve in FY2023 as evident from the profitability ratios such as Return on Assets (RoA) and Return on Equities (RoE) reaching decadal high of 1.2% and 12.9%, respectively. The improvement in RoA points toward the improvement in the efficiency of asset utilisation by the SCBs. Stable income and lower provisions mainly led to rise in RoA. High credit offtake, lower provisioning requirements for stressed assets and improvement in asset quality ratio helped in boosting the profitability of SCBs. The consolidated net profit of the SCBs grew by 44.6% in FY2023 as against 49.2% in FY2022, largely driven by public sector banks. SCBs have continued to exhibit positive trends in their asset quality by achieving the lowest GNPA since FY2015. The GNPA ratio of SCBs fell to 3.9 % by end-March 2023 and further to 3.2% by end-September2023. During FY2023, around 45% of reduction in GNPAs of SCBs was contributed by recoveries and upgradation. Dun & Bradstreet