Overview
- Macro stress tests indicate the system GNPA could improve from 2.1% in September 2025 to 1.9% by March 2027 under the baseline, rising to 3.2–4.2% under adverse scenarios.
- Capital remains comfortable at 17.2% CRAR as of September 2025, though a severe shock would see six banks, representing 15% of assets, breach the minimum requirement.
- Profitability stayed robust in FY25 with SCBs’ net profit up 14.8% to Rs 4.01 lakh crore and RoA/RoE at 1.4%/13.5%, as credit and deposits grew in double digits with some moderation.
- Asset quality reached multi‑decadal lows (GNPA 2.2% at March‑end 2025; 2.1% at September‑end), yet stress remains uneven, highest in consumer durables within retail and in leather within industry.
- RBI flags workstreams on climate risk disclosures and a climate risk information system, ethical AI guidelines, digital payments internationalisation, and measures to curb misselling and strengthen recovery practices.