Dun & Bradstreet India’s Leading BFSI Companies 2017

Trends in Credit and Deposit Growth (y-o-y in %)

20

15

10

5

0

FY12

FY13

FY14

FY15

FY16

Bank Credit growth

Aggregate Deposits Growth

Source: RBI data and Dun & Bradstreet Research

Capital to Risk Weighted Asset Ratio for all SCBs improve in FY16 The capital to risk weighted assets ratio (CRAR) of all SCBs marginally increased to 13.2% in FY6 from that of 12.9% in FY15. Across the bank groups’, the public sector and the private sector indicate a slight increase in their CRAR and stood at 11.6% and 15.7% respectively as of March 2016. However foreign sector banks are strengthening their capital base cover and balance sheets and displayed a comparatively better CRAR ratio of 16.5% over the previous year. Overall, SCBs managed their Tier-1 leverage ratio and remained unchanged at 6.8% during FY16.

Capital to Risk Weighted Assets Ratio (in %)

Leverage Ratio

25

12

9.9

10

8.9

20

16.5

15.7

8

6.8

15

13.2

11.6

5.5

6

10

4

5

2

0

0

Public Sector Banks Private Sector Banks Foreign Banks

All SCBs

Public Sector Banks Private Sector Banks Foreign Banks

All SCBs

FY14 FY15 FY16

FY14 FY15 FY16

Source: RBI data and Dun & Bradstreet Research

Asset quality of all SCBs Continued to Deteriorate in FY16 The gross non-performing advances (GNPAs) of public sector banks continued to display the highest level of stressed advances ratio at 14.5 %, compared to private and foreign sector banks that recorded stressed advances ratio at 4.5 %. The GNPAs of all SCBs sharply increased to 7.6% as of March 2016 compared to 4.6% in FY15. The restructured standard advances ratio declined considerably to 3.9% as compared to 6.4% in FY15 for all SCBs. GNPAs largely contributed to the increase in the overall stressed advance ratio to 11.5% for FY16 from 10.9 in FY15. Looking at the y-o-y growth of GNPAs there has been a significant rise across public, private and foreign sector banks in FY16. This is reflected in the sharp 79.7% increase in GNPAs of SCBs during FY16.

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