Banks Weathered Pandemic Shock, Says Economic Survey

Until now, the commercial banking system has weathered the pandemic shock even if there are some looming effects, claimed the 2022 Economic Survey tabled in Parliament on January 24.

According to the survey, the gross non-performing advances proportion of Scheduled Commercial Banks (SCBs) kept decreasing from 11.2 percent in 2017-18 to 6.9 percent by September 2021.

In addition, the SCBs saw net Non-Performing advances ratio drop from 6 percent to 2.2 percent throughout the exact same.

The economic survey additionally stated, “accommodative money policy, along with other regulatory dispensations, asset classification stalemate, short-term moratorium and provision of adequate liquidity was implemented in order to supply a safety net to the system.”

“Liquidity has been down partly but continues to be in surplus mode, and regulatory measures have been realigned,” showed the economic survey.

The survey also stated that bank credit growth expedited slowly in 2021-22 from 5.3 percent in April 2021 to 9.2 percent as of December 31, 2021.

Credit to the agricultural sector has increased at the sectoral level, and improvement can be seen in the industry field, whereas the service field is yet to recover.

Speaking of the bull run in the capital markets, the survey said that 2021-22 was phenomenal for the markets. Between April and November 2021, Rs 89,066 crore was raised through 75 IPOs, which is a lot higher in the last decade.

Read the original article on The Economic Times.

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