Page 153 - economic_survey_2021-2022

Monetary Management and Financial Intermediation 127

Figure 11: Capital Adequacy Ratio (per cent)

17

16

15

per cent 14

13

12

11

10
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 Sep-21

Source: RBI
Note: Number for September 2021 is based on offsite returns

4.21 SCBs’ annualised return on assets (RoA) improved from 0.6 per cent at end-September
2020 to 0.8 per cent at end-September 2021, while their annualised return on equity (RoE)
improved from 7.7 per cent to 9.0 per cent during the same period. The RoA and RoE for PSBs
became positive in June 2020 and continued to be positive for the period ending September
2021, after recording negative profitability ratios during March 2016 to March 2020.

Table 3: NPAs, CRAR, RoE and RoA – SCBs, PSBs and Private Sector Banks (per cent)

Scheduled Commercial Banks Public Sector Banks Private Sector Banks
Period GNPA GNPA GNPA
Ratio CRAR RoE RoA Ratio CRAR RoE RoA Ratio CRAR RoE RoA

Mar-19 9.07 14.32 -1.82 -0.15 11.59 12.2 -10.97 -0.66 5.25 16.07 5.49 0.60

Mar-20 8.21 14.78 0.78 0.07 10.25 12.85 -3.92 -0.25 5.45 16.55 3.20 0.35
Sep-20 7.49 15.84 7.68 0.64 9.39 13.51 4.33 0.26 4.93 18.21 10.04 1.10

Mar-21 7.33 16.30 7.64 0.65 9.11 14.04 4.63 0.28 4.94 18.42 10.01 1.14
Sep-21 6.93 16.50 9.04 0.79 8.57 14.4 8.47 0.52 4.73 18.65 10.01 1.17

Source: Offsite Returns, Global Operation, RBI

4.22 The net profit (profit after tax) for PSBs increased from `14,688 crore during first half
of 2020-21 to `31,144 crore during first half of 2021-22. Similarly, the net profit for private
sector banks increased from `32,762 crore to `38,234 crore during the same period. Overall,
for SCBs, the net profit increased from `59,426 crore at end-September 2020 to `78,729 crore
at end-September 2021.