{"id":86400,"date":"2019-12-25T16:46:20","date_gmt":"2019-12-25T11:16:20","guid":{"rendered":"http:\/\/factly.forumias.com\/?p=12539"},"modified":"2019-12-25T16:46:20","modified_gmt":"2019-12-25T11:16:20","slug":"economic-revival-key-to-banks-health","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/economic-revival-key-to-banks-health\/","title":{"rendered":"Economic revival key to banks\u2019 health"},"content":{"rendered":"\n<p><strong>News:<\/strong>The Reserve Bank of India has released a report titled Trend and Progress of Banking in India 2018-19.<br><\/p>\n\n\n\n<p><strong>Facts:<\/strong><br><\/p>\n\n\n\n<p><strong>Key Highlights from the report:<\/strong><br><\/p>\n\n\n\n<p><strong>What are the positives in the Banking sector?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The Indian banking sector\u2019s financial parameters such as bad loans and capital adequacy have shown an improvement in recent times.<\/li><li>In 2018-19, the asset quality of scheduled commercial banks turned around after a gap of seven years with the overhang of stressed assets declining and fresh slippages arrested.<\/li><li>Besides,recapitalization had helped public sector banks in shoring up their capital ratios.<\/li><li>Hence,as a result of declining provisioning requirement,the banking sector returned to profitability in the first half of 2019-20.&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>What are the concerns according to the report?<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The overall health of the banking sector will depend on revival in economic growth.However,the GDP growth for the second quarter of the current financial year has dipped to a six-year low of 4.5%.<\/li><li>Despite the improvement in some of the important parameters, the risk-averse nature among lenders was worrisome.<\/li><li>Further,the waning of confidence among the borrowers is leading to credit slowdown and is affecting the overall economic activity.&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>Recommendations:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The capital infusion by the government in public sector banks is just not enough to meet the regulatory minimum.Hence,the banks might require more recapitalization.<\/li><li>The financial health of PSBs should also be assessed by their ability to access capital markets rather than looking to the government as a recapitalizer of the first and last resort.<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>News:The Reserve Bank of India has released a report titled Trend and Progress of Banking in India 2018-19. Facts: Key Highlights from the report: What are the positives in the Banking sector? The Indian banking sector\u2019s financial parameters such as bad loans and capital adequacy have shown an improvement in recent times. In 2018-19, the&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/economic-revival-key-to-banks-health\/\">Continue reading <span class=\"screen-reader-text\">Economic revival key to banks\u2019 health<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3127],"tags":[394,3978],"class_list":["post-86400","post","type-post","status-publish","format-standard","hentry","category-economy","tag-rbi","tag-report-on-banks","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704809180},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86400","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=86400"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/86400\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=86400"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=86400"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=86400"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}