Panorama July 2024 edition is out now!

Panorama is a meticulously crafted report that offers a comprehensive view of the macro factors and market trends shaping India’s economic landscape.

Here are the key insights from the report:

1. India’s banking sector recorded a continuous improvement in asset quality across sectors, with the GNPA ratio reaching a 12-year low in FY24. NBFCs also reported a broad-based improvement in asset quality. However, the share of unsecured loans in the total NBFC loan book declined following the RBI’s November 2023 circular.
2. Delinquency levels have increased in the personal loans category, particularly among borrowers with loans below Rs 50,000. However, public sector banks have significantly reduced delinquency levels in consumer credit over the past year. Meanwhile, the share of low-rated borrowers in new consumer credit declined in FY24.
3. The monsoon recovered in early July from a steep deficit in June 2024. However, the distribution remains uneven. The reservoir storage levels are currently lower than last year and below normal in most regions, except in the South.
4. Kharif sowing has been off to a slow start and remains below the 2021 and 2022 levels. The pace of sowing should improve as the monsoon progresses. A good kharif crop production should help ease food inflation as fresh produce arrives in the market by the end of the calendar year.
5. The rural sector is showing clear signs of economic recovery, with improvement in rural wage growth and a decline in demand under the Employment Guarantee Act. Two-wheeler sales have recovered in 2024, while tractor sales have recovered in the June 2024 quarter. A favourable monsoon is likely to further aid the recovery in the rural sector.

Click here to read the full report