RBI Report: Indian Banks Show Strong Growth, Profitability, and Record Low NPAs

• RBI report highlights robust performance of India's banking sector in 2024-25 with double-digit balance sheet growth.
• Scheduled Commercial Banks (SCBs) maintained double-digit deposit and credit growth, alongside a strong Capital to Risk-Weighted Assets Ratio (CRAR) of 17.2% in September 2025.
• Asset quality significantly improved, with Gross Non-Performing Assets (NPAs) dropping to a multi-decade low of 2.1% in September.
• The banking sector demonstrated strong profitability, achieving a Return on Assets of 1.4% and Return on Equity of 13.5%.
• Urban Co-operative Banks and NBFCs also reported strong growth, improved asset quality, and robust capital buffers, contributing to financial inclusion and economic development.

Why It Matters: India's banking sector is thriving with strong growth, high profitability, and historically low NPAs, as per RBI.