Indian scheduled commercial banks' gross NPA ratio at 15-year low

Private sector banks' gross NPA ratio was stable at 2.8 per cent while foreign banks saw a decline to 0.9 per cent from 1.2 per cent

The Indian scheduled commercial banks’ (SCBs’) asset quality continues to improve, with gross and net non-performing asset (NPA) ratios at a multi-year low, according to the Reserve Bank of India’s (RBI's) latest Financial Stability report.

 

While overall gross NPAs were lower at 2.3 per cent (of gross advances) as of March 31, 2025, compared to 2.8 per cent a year ago, public-sector banks saw a sharp reduction from 3.7 per cent in March 2024 to 2.8 per cent in March 2025. Private-sector banks’ gross NPA ratio was stable at 2.8 per cent, while foreign banks declined to 0.9 per cent from 1.2 per cent.