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RBI Report Finds Indian Banks Resilient as Bad Loans Touch Multi‑Decade Low

Stronger balance sheets have positioned lenders to sustain credit flow.

Overview

  • The gross non‑performing assets ratio fell to 2.2% at end‑March 2025 and 2.1% by end‑September 2025, the lowest in decades.
  • Scheduled commercial banks posted combined net profit of Rs 4.01 lakh crore in 2024‑25, up 14.8% year on year.
  • Profitability stayed healthy with RoA at 1.4% and RoE at 13.5% in 2024‑25, easing to about 1.3% and 12.5% in the first half of 2025‑26.
  • Capital buffers remained well above requirements, with the CRAR at 17.4% in March 2025 and 17.2% in September 2025.
  • Growth in credit and deposits stayed in double digits with some moderation, while urban co‑operative banks and NBFCs recorded improved asset quality and stronger buffers.