- Scheduled commercial banks’ credit growth remained subdued at 8.7 per cent year-on-year (YoY) in September 2019.
- Banks’ capital adequacy ratio improved significantly after the recapitalisation of public sector banks (PSBs) by the government.
- Continuing the trend witnessed in the previous half-year, the banking sector has shown signs of stabilisation.
- Performance of public sector banks needs to improve, they need efforts to build buffers against disproportionate operational risk losses.
- Private sector banking space also needs to focus on aspects of corporate governance.
- Non-banking financial intermediation space continues to show signs of restructuring of their underlying business models.
- While credit markets are becoming more competitive following recapitalisation of PSBs, market funding for NBFCs getting more discerning.
- Insolvency and Bankruptcy Board of India (IBBI) continues to make steady progress in the resolution of stressed assets.
- India’s financial system remains stable notwithstanding weakening domestic growth.
- The performance of scheduled urban cooperative banks (SUCBs) deteriorated significantly between March and September.
- With global growth and trade projected to slow down further, India’s exports could face challenging demand conditions going forward.
- While the government’s fiscal deficit numbers improved, revenue shortfall amidst weaker private consumption, the investment could challenge fiscal parameter.
- Foreign portfolio investors (FPIs) invested to the tune of $7.8 billion in the Indian securities market during April-October 2019.
- Emerging trends in consumer credit continue to show a challenging environment for NBFCs.
- Failure of any NBFC or HFC will act as a solvency shock to its lenders.
- Loan-related frauds continued to dominate in aggregate constituting 90% per of all frauds reported in FY2018-19 by value.
