Bad Assets of Banks Fall to Multi-Decadal Low of 2.3%

Bad assets were a big challenge for the banking system in the previous decade, but the system has been improving on the key ratio ever since.

- AGENCIES

The gross non-performing assets (NPAs) of the banking system declined to a multi-decadal low of 2.3 per cent in March 2025, the Reserve Bank said on Monday.

The level of the GNPAs had stood at 2.6 per cent in September 2024.

In the half-yearly, Financial Stability Report, the Reserve Bank of India (RBI) said the GNPAs for 46 banks accounting for 98 per cent of the total assets of scheduled commercial banks (SCBs) may rise to 2.6 per cent by March 2027.