According to the credit rating agency, the GNPA of Indian banks at the end of FY22 was at 5.9 per cent and the overall provision coverage ratio (PCR) went up to 70.9 per cent.

"As the Indian economy has navigated the pandemic-induced shocks, the bank credit growth by scheduled commercial banks (SCBs) improved post-August 2021 to reach 13.1 per cent in early June 2022, a rate last recorded in March 2019," the report said.

Apart from retail, the major driver of this growth has been wholesale credit, which reported double digit growth after witnessing a significant slowdown last year.

According to CARE Ratings, the Financial Stability Report of the Reserve Bank of India (RBI), released on June 30, presents a fairly satisfactory picture. The GNPA ratio of SCBs had been on a downward trajectory since March 2019, owing to recoveries and higher write-offs by multiple banks and One-Time Restructuring (OTR) scheme announced by RBI.