Overview
- Gross NPAs fell to 2.2% at end‑March 2025 and 2.1% at end‑September, with the NPA stock down to Rs 4.32 lakh crore from Rs 4.81 lakh crore.
- Recoveries and upgrades drove 42.8% of FY25 NPA reduction as the slippage ratio eased to 1.4% at March‑end and 1.3% by September.
- Profitability stayed robust with SCB net profit up 14.8% to Rs 4.01 lakh crore in FY25, RoA at 1.4% in FY25 and 1.3% in H1 FY26, and RoE at 13.5% and 12.5%, respectively.
- Capital buffers remained strong with CRAR at 17.4% in March and 17.2% in September, while deposits and credit continued double‑digit growth with some moderation.
- Performance diverged across segments as PSBs, private and foreign banks improved, small finance banks’ GNPA rose to 3.6%, consumer‑durables and leather loans showed stress, UCBs strengthened, and NBFCs sustained double‑digit credit growth with solid capital.