New Delhi [India], December 29 (ANI): The Indian banking sector recorded a strong and stable performance during 2024–25, maintaining resilience despite a marginal moderation in growth, according to a report released by the Reserve Bank of India (RBI) on Monday.
The RBI’s Report on Trend and Progress of Banking in India 2024–25 highlighted that the sector sustained its strength through healthy expansion of balance sheets across commercial banks, co-operative banks and other financial institutions. The report also covers developments during the first half of 2025–26.
The findings showed that both deposits and credit continued to grow at double-digit rates, reflecting sustained demand and confidence in the banking system.
A key highlight of the report was the significant improvement in asset quality. The gross non-performing assets (GNPA) ratio declined to multi-decade lows, falling to 2.2 per cent by March 2025 and further easing to 2.1 per cent by September 2025. This improvement indicates enhanced financial stability, with fewer loans turning stressed.
Banks also maintained strong capital buffers. For scheduled commercial banks, the capital to risk-weighted assets ratio (CRAR) stood at 17.4 per cent in March 2025 and remained robust at 17.2 per cent by September 2025, providing adequate protection against potential future shocks.
Profitability indicators remained elevated during the period. The return on assets (RoA) stood at 1.4 per cent for 2024–25 and moderated marginally to around 1.3 per cent during the first half of 2025–26. These levels reflect efficient operations and sustained earnings momentum in the banking system.
The report also noted positive performance across other segments of the financial system. Urban co-operative banks recorded faster balance sheet growth compared to the previous year and improved asset quality for the fourth consecutive year, alongside growth in deposits and profits.
Non-banking financial companies (NBFCs) reported double-digit credit growth, accompanied by better asset quality and the maintenance of strong financial buffers, further reinforcing overall financial sector stability.
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