New Delhi, Dec 6 (Reporter) The financial health of the banks and Non-banking Financial Institutions (NBFCs) continues to be strong as the Gross Non-performing Assets (GNPA) ratio of Scheduled Commercial Banks has improved further at the end of September this year, said RBI Governor Shaktikanta Das on Friday. The financial parameters of banks and NBFCs continue to be strong. The GNPA ratio of SCBs improved further and was 2.54 per cent as at end-September 2024, the lowest since March 2011, Das said while announcing the Credit Policy. The annualised slippage ratio, which measures new NPA accretions as a percentage of standard advances, was at 1.35 per cent as at end of September 2024, as against 1.70 per cent a year ago. He also said that the incoming data suggests that the gap between the growth of credit and deposits of scheduled commercial banks has narrowed with deposits keeping pace with loan growth. The Reserve Bank’s supervision of the financial sector and its entities continues to be vigilant and proactive. Incipient signs of stress, if any, either at the systemic or entity levels, are monitored closely, and proactive action is initiated. The effort is always to resolve the issues non disruptively. Continuous engagement is held over several months with the regulated entities. Only in extreme cases where sufficient corrective action is not visible, the Reserve Bank resorts to the imposition of business restrictions as a last resort in the interest of consumers and financial stability. SMA-2 ratio, a lead indicator of building of fresh stress in the banking book, was at 0.88 per cent in September 2024, similar to the previous year figure of 0.87 per cent. On the other hand, provision coverage ratio, capital to risk-weighted assets ratio, and liquidity coverage ratio were 76.79 per cent, 16.77 per cent, and 128.59 per cent, respectively in September 2024, much above the regulatory thresholds. The ratio of net NPAs to total equity was 3.57 per cent in September 2024, the lowest ever. The annualised return on assets (RoA), return on equity (RoE), and net interest margin (NIM) stood at 1.40 per cent, 14.58 per cent, and 3.52 per cent, respectively, in September 2024, Das added...////...