India’s Leading BFSI and FinTech Companies 2023

10 | India’s Leading BFSI and FinTech Companies 2023 [ INDIAN BANKING SECTOR OVERVIEW ] CRAR of Indian Scheduled Commercial Banks CRAR - Tier I of Indian Scheduled Commercial Banks Source: RBI Resource mobilization by banks through private placements, which had accelerated in FY21, slowed during FY22. Although the number of issues tripled for private banks in FY22, the total amount raised increased by only 5 per cent. Most of the resources mobilized by private sector banks in FY22 were through private placements via bonds/debentures, while during FY21, it was entirely via equity issuances. ASSET QUALITY: RECOVERIES, UPGRADATION AND WRITE-OFFS LED TO SHARP IMPROVEMENT FOR GNPA NPAs adversely af fect credi t deployment, banks’ profitability through increased provisioning, and impinge on their capital, apart from entailing recovery costs. The gross NPA ratio peaked from its high in FY18 is on declining trend. The gross NPA almost halved in FY22 as compared to FY18. The decline in gross NPA was due to recoveries, upgradations, and write-offs. Similarly net NPA ratio declined from 6% in FY18 to 1.7% in FY22. NPA split of Scheduled Commercial Banks (%) Source: RBI The gross NPA almost halved in FY22 as compared to FY18 Dun & Bradstreet