RBI: Indian Banks Soar with Double-Digit Growth, NPAs Hit Multi-Decadal Low

• Indian commercial banking sector showed resilience in 2024-25 with double-digit balance sheet expansion, deposits, and credit growth, as per RBI.
• Asset quality improved significantly, with the gross non-performing assets (GNPA) ratio declining to a multi-decadal low of 2.1% by end-September 2025.
• Profitability remained robust for Scheduled Commercial Banks (SCBs), with Return on Assets (RoA) at 1.4% and Return on Equity (RoE) at 13.5% in 2024-25.
• Urban co-operative banks and Non-banking financial companies also recorded higher growth, improved asset quality, and strengthened capital buffers.
• RBI plans to implement climate risk disclosure, shift to ECL framework by April 2027, and enhance consumer protection measures.

Why It Matters: RBI report highlights strong Indian banking sector with growth, low NPAs, and future-focused reforms.