This is just a diffusion indicator used to identify turning points in market cycle. I deploy cash to buy stocks in my watchlist but look at the Nifty100 index because it is diversified and consists of most liquid stocks so it is appropriate for such an indicator.
To a good extent I look at the numbers and ignore the noise.I think it will be difficult for a large bank to fudge the numbers for so long especially when it is being scrutinized by multiple auditors including RBI. If bank is disbursing loans at a higher rate every year, it must be able to do so because it is able to recover the old ones right? RBI also conducted not just one but 2 asset quality reviews followed by risk based assessment and Yes has reported divergences. I will take it as a worst case scenario and it does not look so bad.
If you can find such indicator please let me know as well. 
When investors begin to ignore the bad news and drive stocks higher even on a hint of good news, that’s an indicator for me that all bad news is priced in although it can be a false start initially.
RBI has some data (http://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics) but otherwise, you will have to compile this information yourself for individual banks.
No idea on VASA but @kaustubhkale may be able to help on this one. Haven’t tracked One Point One since IPO. My IPO notes are here.
Good call. But indicator for smallcaps is not so reliable as the Nifty100 indicator. Even that can trigger a false buy early in a bear market and a false sell early in a bull market. So I will be very selective in buying at this time.
I did miss Piramal few years ago as my screener is not designed for companies that are undergoing some restructuring. This is more suitable to stable and growing companies that are not changing tracks too many times. Haven’t spent lot of time looking at Piramal though so no red flags.