Banks’ gross NPA ratio eases to 12-year low of 2.8% in March
The gross non-performing assets (GNPA) ratio of scheduled commercial banks, which moderated to a 12-year low of 2.8 per cent in March 2024, may further improve to 2.5 per cent by March 2025, the Reserve Bank of India (RBI) said.
The estimate for GNPA ratio for March 2025 is based on the macro stress tests, performed to assess the resilience of banks’ balance sheets to unforeseen shocks emanating from the macroeconomic environment.
“The asset quality of scheduled commercial banks (SCBs) recorded sustained improvement and their GNPA ratio moderated to a 12-year low in Marc 2024 (to 2.8 per cent). Their NPA (NNPA) ratio too improved to a record low of 0.6 percent,” the RBI said in its Financial Stability Report (FSR) for June 2024.