India’s Leading BFSI and FinTech Companies 2023

6 | India’s Leading BFSI and FinTech Companies 2023 T he Indian banking sector remained resilient during FY22 with credit growth accelerating to highest levels in last eight years. Retail and MSME loans have emerged as the main drivers of banking credit. Banks witnessed healthy balance sheet growth with timely policy support the impact of the pandemic on banks’ f inancial performance and soundness indicators. The bad loans challenges of non- performing assets are easing, and profitability is improving to levels last observed during 2014/15 levels. INDIAN BANKING SECTOR OVERVIEW Asset quality of most banks is on improvement trendwith controlled f resh s l ippages and heal thy recoveries resulting in declining gross NPA for Indian banks. Indian banks continued their uptake in end-to-end digital adoption across new accounts, deposits, investments, cards, and loans. In FY23, globalization of inflation, energy and food shortages led to tightening of monetary policy worldwide exposing financial systems to greater uncertainties and downside risks. In highly uncertain global environment, Indian economy is showing signs of strengths which reinforces confidence in the Indian banking system. SCHEDULED COMMERCIAL BANK CREDIT GROWTH: HIGHEST SINCE LAST 8 YEARS The banking credit grew by ~12% during FY22 led by services and retail sectors. Credit flows to the services sector grew by 14.7% during FY22 from a contraction during FY21. The recovery in credit to services sector was broad-based led by commercial real estate, Dun & Bradstreet