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Indian banking sector shows strong post-pandemic performance: SBI

New Delhi, Jan 12 (UNI) India’s banking sector has recorded a sharp post-pandemic revival, marked by rapid expansion in assets, deposits and credit, reflecting renewed financial intermediation and deeper credit penetration across the economy, said SBI report released here on Monday. However, the accelerating pace of lending relative to deposit mobilisation is also heightening liquidity and risk concerns, according to a detailed trend analysis by SBI Research. Bank assets expanded significantly after years of subdued growth, rising from about 77 per cent of GDP in FY21 to nearly 94 per cent by FY25.

Central India's Premier English Daily

Central India's Premier English Daily

Credit: Centralchronicle

Key Highlights

  • Over a longer horizon, the scale of the banking system has grown manifold, with total assets increasing from ₹23.6 lakh crore in FY05 to over Rs 312 lakh crore in FY25, signalling the growing role of banks in economic expansion.
  • Deposits and advances have also risen sharply over the past two decades.
  • Deposits surged from Rs 18.4 lakh crore in FY05 to Rs 241.5 lakh crore in FY25, while advances expanded from Rs 11.5 lakh crore to Rs 191.2 lakh crore during the same period.
  • Notably, credit growth has outpaced deposit growth since FY21, pushing the system-wide credit–deposit ratio up from 69 per cent in FY21 to 79 per cent in FY25, with incremental ratios frequently breaching the 100 per cent mark.
  • Public sector banks, which had been steadily losing market share since FY08, are showing signs of recovery.
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Sources

  1. Indian banking sector shows strong post-pandemic performance: SBI

This quick summary is automatically generated using AI based on reports from multiple news sources. The content has not been reviewed or verified by humans. For complete details, accuracy, and context, please refer to the original published articles.

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