Poised for lift-off: The India's banking system is in a sweet spot

The Reserve Bank of India (RBI) has of late voiced its concerns over the growth in the unsecured retail segment, which has outpaced secular credit growth

The banking system is in a sweet spot. Gross non-performing assets (GNPAs) continue to decline – they fell to a decadal low of 3.9 per cent at the end of March 2023 and further to 3.2 per cent at end-September 2023, building on the trend that started in FY19. Mint Road’s Financial Stability Report of December 2023 has it that the GNPA ratio may improve to 3.1 per cent by September 2024 from the current level of 3.2 per cent. What is impressive is this matter of detail: In the case of large borrowers, the proportion of standard assets to