New Delhi: The performance of Indian banks has improved as Non-Performing Asset ratios have declined and credit growth accelerated, said the country's Economic Survey 2018-19.
According to the Survey, the performance of public sector banks, in particular, improved in 2018-19.
"The Gross NPA ratio of Scheduled Commercial Banks decreased from 11.5 per cent to 10.1 per cent between March 2018 and December 2018," said the Survey, which was tabled in Parliament by Finance and Corporate Affairs Minister Nirmala Sitharaman.
"Growth in Non-food Bank Credit (NFC), which remained sluggish in the last few years, showed improvement in 2018-19. Bank credit to large industry and services segments were the main drivers of overall NFC growth in 2018-19. However, the pace of credit growth has moderated in last few months."
The non-banking financial companies (NBFCs) sector experienced difficult times in the aftermath of the ratings downgrades and default of IL&FS Group in 2018-19.
Besides, the Economic Survey stated that the ecosystem for insolvency and bankruptcy is being "systematically built with recovery and resolution of significant amount of distressed assets as well as palpably improved business culture".
"Till March 31, 2019, the Corporate Insolvency Resolution Process yielded a resolution in 94 cases resulting in the settlement of claims upto Rs 173,359 crore," the survey said.
"Moreover, as on 28 February 2019, 6,079 cases involving a total amount of Rs 2.84 lakh crore have been withdrawn before admission under provisions of Insolvency and Bankruptcy Code (IBC). Further, as per RBI reports, Rs 50,000 crore has been received by banks from previously non-performing accounts."