Business Standard

Changing dynamics of Indian banking

One constant feature of banks' balance sheets over the years - in good times and bad - is the high bad loans in the agriculture sector. Can anything be done about it?

bank banks banking

Agriculture and industry together now account for 58 per cent of the loan book with an equal share; the service sector’s share is 27.3 per cent; and 13.9 per cent belongs to personal loans

Tamal Bandyopadhyay
Indian banks are in the pink of health. The industry has never had such a good time when it comes to the quality of its assets. Gross bad loans — non-performing assets (NPAs) in banking parlance — dropped to a 12-year low of 2.8 per cent in FY24. After setting aside money for bad loans, net NPAs are at a historic low of 0.6 per cent.

In the second half of the last decade, some banks were in the ICU. Doctor Raghuram Rajan treated the sector; regular health check-ups were conducted at the diagnostic centre called the Reserve
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of or the Business Standard newspaper

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First Published: Jul 07 2024 | 4:27 PM IST

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