Overview
- Gross NPAs fell to 2.2% at end‑March 2025 and to 2.1% by end‑September 2025, with about 42.8% of the annual reduction driven by recoveries and upgrades and absolute GNPAs easing to Rs 4.32 lakh crore from Rs 4.81 lakh crore.
- Scheduled commercial banks’ combined net profit rose 14.8% to Rs 4.01 lakh crore in 2024‑25, with RoA at 1.4% and RoE at 13.5% in the year and 1.3% and 12.5% in H1 2025‑26.
- Capital buffers remained robust, with the CRAR at 17.4% at March‑end 2025 and 17.2% at September‑end, and liquidity well above regulatory requirements.
- Deposits and credit grew at double‑digit rates in 2024‑25 but at a moderated pace, while urban co‑operative banks and NBFCs reported stronger balance sheets and improved asset quality.
- The report notes stress pockets in consumer durables and leather sectors and deterioration at some small finance banks, alongside new priorities to build climate‑risk systems, reinforce cybersecurity and enhance secure payments and customer protection.