In 2022, the banking system will undergo substantial reforms, including privatisation and the disinvestment of the IDBI Bank.

The banking system is slated to undergo substantial reforms in the following year, with the government's goal for 2022 including the privatisation of public sector banks and the strategic disinvestment of IDBI Bank. Overall, the evolving coronavirus scenario, particularly in light of the Omicron type, may slow the pace of changes. Despite the impact of the second wave of the pandemic, the financial industry performed pretty well in 2021, according to the figures. Non-performing assets (NPAs) in the banking industry have decreased to Rs 8,35,051 crore as of March 31, 2021, according to the government's 4Rs plan of Recognition, Resolution, Recapitalization, and Reforms. According to the Reserve Bank of India's (RBI), Financial Stability Report (FSR) released in July 2021, macro-stress tests based on correlation modelling imply that the Gross Non-Performing Asset (GNPA) ratio of Scheduled Commercial Banks could rise from 7.48 per cent in March 2021 to 9.80 per cent in March 2022 under the baseline scenario.