10th SBI Conclave: Sanjeev Sanyal expresses optimism as banks' gross NPAs hit decadal low of 3.2%

Notably, around 45% of the reduction in gross NPAs in FY 2022-23 stemmed from "recoveries and upgradations."

The report detailed the figures for FY 2022-23, depicting a considerable decline in gross NPAs across various bank categories. Public sector banks witnessed their NPAs drop to ₹4.2 lakh crore, while private banks, foreign banks, and small finance banks recorded NPAs at ₹1.2 lakh crore, ₹9,526 crore, and ₹8,608 crore, respectively.

This trend signified a substantial reduction in NPAs, with public sector banks (PSBs) seeing a reduction from ₹1.5 lakh crore to ₹1.02 lakh crore and private banks witnessing a drop from ₹43,738 crore to ₹29,507 crore in net NPAs.

In addition to banking reforms, Sanyal diverged from certain renowned economists' perspectives, particularly disagreeing with Raghuram Rajan's advocacy for a services export-led growth.

Instead, Sanyal underscored the need for a diversified approach, leveraging India's vast domestic market and diverse population.

Amid discussions on India's global competitiveness, Sanyal injected a note of humor by attributing Mumbai's pollution to the city "breathing the transformation."

Further, Sanyal emphasised the socio-economic disparity between India's Eastern and Western regions, urging a concerted effort to bridge this gap.

Highlighting the sluggish growth and economic disparities in states like Bihar, Jharkhand, and West Bengal, he stressed the role of infrastructural development, citing the Ayodhya airport as a prime example of how investments can spur growth in disadvantaged areas.

Sanyal also provided insights into the collaborative yet occasionally divergent viewpoints with figures like Viral Acharya on monetary policy and NPA resolution.