India’s Bank GNPAs Fall to Multi-Decade Low of 2.3%:
The Reserve Bank of India (RBI) has reported that gross non-performing assets (GNPAs) in the banking sector declined to a multi-decade low of 2.3% in March 2025, down from 2.6% in September 2024. However, the central bank warned that GNPAs could rise to 2.6% by March 2027, according to its biannual Financial Stability Report (FSR). The drop in bad loans reflects sustained improvement in asset quality, particularly post-asset quality review (AQR) reforms.RBI’s June 2025 Financial Stability Report has highlighted a substantial decline in gross NPAs to a multi-decade low. The report warns of a moderate uptick in GNPAs over the next two years. It reflects the long-term improvement in banking sector asset quality following AQR and capital infusion. Significant policy implications for banking health, credit growth, and financial resilience.
