New Delhi. The last decade has been very good for Indian banks. During this period, their profits increased four times. Also, there has been a big decline in bad loans, which was always a big headache for them. This information has been given by the capital market and investment group CLSA in one of its reports.

strengthened balance sheet

According to the CLSA report, "The balance sheets of Indian banks are the strongest in the last 10 years. Their profits have also increased sharply. Net non-performing loans (net NPLs) were earlier a curse for the Indian banking sector. But now, due to better asset quality, strong provisioning buffers and better capital position, it has come down to a decade low."

The report also states that private sector banks have overtaken PSU banks in current account (CA) deposits in the last decade. At the same time, non-deposit lending has also decreased. Loan growth in this sector has increased from the decadal average of 10 percent to 15 percent in the last two years. The quality of corporate loans has also improved in the last 5-7 years.

Credit growth a matter of concern

The report also tells the banks the need to focus on one area. It says that credit growth has currently exceeded deposit growth. It has increased from an average of 10 percent to 15 percent in the last two years. This means that people are depositing less money in the bank and taking more loans.

A few days ago, America's reputed rating agency S&P Global Ratings had also said that banks may be forced to reduce their loan growth because bank deposits are not growing at that pace. This means that people are not depositing more money in banks because they have many investment options with good returns.