Recent Operations and Performance of Scheduled Commercial Banks

Scheduled commercial banks (SCBs) in India play a vital role in the country’s economy. They provide a wide range of financial services to individuals, businesses, and the government. SCBs are also a major source of credit for the economy.

Recent Operations

In recent years, SCBs have been expanding their operations and reach. They have been opening new branches and ATMs in rural and urban areas. They have also been increasing their focus on digital banking.

Recent Performance

The overall performance of SCBs has improved in recent years. Their profitability has increased, and their non-performing assets (NPAs) have decreased. However, some SCBs, particularly public sector banks, continue to face challenges.

Key Trends

Some of the key trends in the recent operations and performance of SCBs include:

  • Growth in deposits and advances: SCBs have seen a steady growth in deposits and advances in recent years. This growth has been driven by factors such as economic growth, rising income levels, and increased financial inclusion.
  • Improved profitability: The profitability of SCBs has improved in recent years. This improvement has been driven by factors such as lower interest rates, reduced NPAs, and higher fee income.
  • Increased focus on digital banking: SCBs are increasingly focusing on digital banking to improve customer service and reduce costs. They are offering a wide range of digital banking services, such as mobile banking, internet banking, and UPI.
  • Challenges for public sector banks: Some public sector banks continue to face challenges, such as high NPAs and low profitability. The government is taking steps to address these challenges, such as merging banks and providing capital support.

MCQs

  1. Which of the following is NOT a key trend in the recent operations and performance of scheduled commercial banks in India?
    • (a) Growth in deposits and advances
    • (b) Improved profitability
    • (c) Increased focus on digital banking
    • (d) Decline in non-performing assets
  2. What is one of the challenges faced by some public sector banks in India?
    • (a) High non-performing assets
    • (b) Low profitability
    • (c) Both (a) and (b)
    • (d) None of the above
  3. What is the benefit of digital banking for scheduled commercial banks?
    • (a) Improved customer service
    • (b) Reduced costs
    • (c) Both (a) and (b)
    • (d) None of the above

Answers

  1. (d)
  2. (c)
  3. (c)

Conclusion

The recent operations and performance of scheduled commercial banks in India have been positive overall. However, some public sector banks continue to face challenges. The government and the RBI are taking steps to address these challenges and to strengthen the banking sector as a whole.