Published Paper Details:

The strong fundamentals of Indian economy are pushing all the sectors to perform and contribute significantly in the growth of GDP. Among all the sectors, the banking sector is going through its golden years where all the major financial parameters like credit deployment, profitability, asset quality, capital adequacy etc. indicate that the performance of banks are at best of all times. Currently, India is having "twin balance sheet advantage" i.e. strong balance sheets of corporates and public sector banks. The private sector banks are having strong fundamentals and presently growing at very fast pace, taking market share from public sector banks. However, now PSBs are well placed, which is evident from the PSB's performance in FY 2022-23 i.e. "PSBs earned a record aggregate net profit of around INR 1.05 lakh crore", "high capital adequacy(CRAR) of 15.53%", "gross NPA at 4.97%", net NPA at 1.24%, healthy provision coverage of 90.68% etc. Fundamentally stronger PSBs along with private sector banks are ready not only to earn for their shareholders/promoters but also to contribute in the growth of country. The strong fundamentals and government support is putting banking industry in its best era and it is right to say that next few years shall be golden years for Indian banking industry.