Improving confidence

A healthy banking system will support growth

After a decade of rising non-performing assets (NPAs) and lax underwriting standards, particularly on corporate loans, the Indian banking sector is now in good health, with rising profits and the restoration of investor trust. This was reaffirmed in a recent survey of bankers conducted by the Federation of Indian Chambers of Commerce and Industry and the Indian Banks’ Association. The survey, covering 23 banks, showed the sector continued to perform well on several parameters, including asset quality and credit growth. The survey findings also report that banks are well-positioned to transition to the expected credit loss (ECL) regime, and are