India’s Leading BFSI and FinTech Companies 2023

India’s Leading BFSI and FinTech Companies 2023 | 9 [ INDIAN BANKING SECTOR OVERVIEW ] Return of Assets of Indian Scheduled Commercial Banks Source: RBI Return of Equity of Indian Scheduled Commercial Banks Source: RBI The Return on Asset (RoA) of scheduled commercial banks has been on improvement trend since FY18. RoA improved from 0.7% in FY21 to 0.9% in FY22. Similarly, Return on Equity (RoE) improved from 7.7% in FY21 to 10.1% in FY22. The RoA and RoE improved to levels last observed during 2014/15. Robust bank profitability is an indicator of a healthy financial system which can support future economic growth. CAPITAL ADEQUACY: PRIVATE PLACEMENT OF BONDS AND EQUITY SUPPORTED STRONG CRAR RATIOS The capi tal to r isk-weighted assets ratio (CRAR) of scheduled commercial banks has been on increasing trend. CRAR improved from 14.1% in FY21 to 15.7% in FY22. Around 92 per cent of increase in the capital funds was contributed by increase in Tier-I capital of banks, indicative of robustness of capital buffers. CRAR of foreign banks and private sector banks are superior as compared to public sector peers. At end-March 2022, all banks met this regulatory minimumCET-1 ratio requirement of 8 per cent. Dun & Bradstreet