The coast is still not clear: Is the worst over for Indian banks?

Banks are better placed now than any time in the past three years, but they are not yet over the hump

Is the worst over for Indian banks? The past two years saw them ride on treasury trades as deposits soared and credit growth dipped sharply. Gross and net non-performing assets (NPAs) moved south, and the provision coverage ratio (PCR), capital buffers, and profitability indicators are back at pre-pandemic levels. So, what’s the plot ahead?

The Reserve Bank of India’s (RBI’s) Report on Trend and Progress of Banking in India 2020-21 (T&P: FY21) is nuanced: “A pick-up has started in Q2:2021-22, with the economy emerging out of the shadows of the second wave of Covid-19. Going forward, revival