Overview

• Gross NPAs of scheduled commercial banks fell to a multi-decadal low of 2.3% by March 2025 and are projected to rise modestly to 2.5% by March 2027 in baseline stress tests.
• Macro stress tests reaffirm that scheduled commercial banks and nonbank financial companies maintain capital and liquidity buffers above regulatory minimums under adverse scenarios such as heightened global volatility or growth slowdowns.
• Unsecured retail loan NPAs at private banks climbed to 1.8% by March 2025, driven largely by slippages in personal loans and credit cards.
• Microfinance stressed assets, measured by loans overdue 31–180 days, surged to 6.2% in March 2025 following tighter underwriting and a 13.9% contraction in sector credit.
• Per capita household debt reached ₹4.8 lakh by March 2025 with non-housing retail loans accounting for 54.9% of total borrowing.