India's monetary and financial sectors have performed well in the first nine months of Financial Year 2024-25, states the Economic Survey 2024-25, tabled by Union Minister of Finance and Corporate Affairs, Nirmala Sitaraman in the Parliament today. According to Economic Survey, bank credit has grown at a steady rate in the current financial year. There has been a consistent improvement in the profitability of Scheduled Commercial Banks (SCBs) as reflected in a fall in gross non-performing assets (GNPAs) accompanied by a rise in the capital-to-risk weighted asset ratio (CRAR). GNPAs of SCBs are now down to a 12- year low of 2.6 per cent at the end of September 2024. The profitability of SCBs improved during H1 of FY25, with profit after tax (PAT) surging by 22.2 per cent (YoY). The Survey points out that bank deposits continue to exhibit double-digit growth. As of the end of November 2024, the YoY growth in aggregate deposits of SCBs stood at 11.1 per cent. Sector-wise, the growth in agriculture credit as of 29 November 2024 in the current financial year was 5.1 per cent. The growth in industrial credit picked up and stood at 4.4 per cent as of the end of November 2024, higher than 3.2 per cent recorded a year ago. Across industries, bank credit to micro, small, and medium enterprises (MSMEs) has been growing faster than credit disbursal to large enterprises. As of the end of November 2024, credit to MSMEs registered a YoY growth of 13 per cent, whereas it stood at 6.1 per cent for large enterprises.
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