Economic Survey: Banking sector performance remains subdued in current FY

Situation likely to improve with banks diligently following on recoveries

Weighed down by a pool of bad loans, performance of the banking sector, especially of public sector banks, has remained subdued in the current financial year, according to the Economic Survey. But, the situation is likely to improve with banks diligently following on recoveries and stressed asset resolution. Early signs of a pick-up in credit demand, especially from industry, also give room to expect a change in the state of affairs.

According to the Economic Survey for 2017-18, tabled in Parliament on Monday, the gross non-performing advances (GNPA) ratio of scheduled commercial banks (SCBs) increased from 9.6 per cent to