The balance sheet of banks expanded by 12.2% in 2022-23, according to the RBI report

The Reserve Bank of India (RBI) disclosed in its Report on Trend and Progress of Banking in India 2022-23, released on December 27, that the consolidated balance sheet of scheduled commercial banks (SCBs) witnessed a growth of 12.2% during the fiscal year 2022-23. This expansion was propelled by increased credit extended to the retail and services sectors, with deposit growth also experiencing an uptick, albeit at a rate trailing behind credit growth.

The report highlights that the surge in net interest income coupled with reduced provisioning contributed to elevating the net interest margin (NIM) and overall profitability throughout 2022-23. The positive trend in asset quality, initiated in 2018-19, continued during the fiscal year 2022-23, showcasing sustained improvement.

However, the report noted a notable development regarding fraud incidents. In the first half (H1) of the fiscal year 2023-24, the reported number of frauds exhibited a twofold increase annually, rising to 14,483 from the 5,396 reported during the corresponding period in the previous year. Despite the rise in the number of incidents, the total amount involved in these frauds decreased substantially, from US$ 2.12 billion (Rs. 17,685 crores) to US$ 317.25 million (Rs. 2,642 crores). This comprehensive report underscores the multifaceted dynamics shaping the banking sector, emphasizing the positive financial indicators alongside challenges such as the increased reported fraud, requiring vigilant monitoring and response strategies.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.