Banks Post Robust Performance In FY25; GNPA Declines To Multi-Decadal Low Of 2.2 Per Cent, Says RBI

Mumbai, Dec 29: Commercial banks maintained robust performance in 2024–25, with the gross non-performing assets (GNPA) ratio declining to a multi-decadal low of 2.2 per cent at March-end, according to an RBI report released on Monday.

Strong Balance Sheets Support Stability

The banking sector remained resilient during 2024–25, supported by a strong balance sheet, sustained profitability and improved asset quality, said the Report on Trend and Progress of Banking in India 2024–25.

Bank credit and deposit growth continued in double digits, albeit with a moderation. Capital and liquidity buffers remained well above the regulatory requirements across bank groups.

Credit Flow Backed By Solid Fundamentals

“Strong banking sector fundamentals provide a buffer against risks, which, together with prudent regulation, create conditions for sustained credit flow,” the report said.

Net Profits Rise To Rs 4.01 Lakh Crore

Net profits of commercial banks increased during 2024–25, albeit at a slower pace compared to the previous year, it added.

Combined net profit of all scheduled commercial banks (SCBs) rose 14.8 per cent year-on-year to Rs 4.01 lakh crore during 2024–25. In 2023–24, their profit had increased by 32.8 per cent to about Rs 3.5 lakh crore.

Profitability Indicators Remain Healthy

The RBI report said the profitability of the SCBs remained robust, with the return on assets (RoA) at 1.4 per cent and return on equity (RoE) at 13.5 per cent in 2024–25.

During H1: 2025–26, RoA and RoE of the SCBs stood at 1.3 per cent and 12.5 per cent, respectively.

Capital Adequacy Stays Well Above Norms

The capital-to-risk-weighted assets ratio of SCBs was 17.4 per cent at March-end 2025 and 17.2 per cent at the end of September 2025, the report said.

Asset Quality Improves Further

“Asset quality strengthened further, with the gross non-performing assets (GNPA) ratio declining to a multi-decadal low of 2.2 per cent at end-March 2025 and 2.1 per cent at end-September 2025,” it pointed out.

Urban Co-Operative Banks Show Improvement

Also, the consolidated balance sheet of urban co-operative banks recorded higher growth in 2024–25 than the previous year.

Their asset quality improved for the fourth consecutive year, alongside the strengthening of their capital buffers and profitability.

NBFCs Maintain Double-Digit Growth

According to the report, non-banking financial companies continued to record double-digit credit growth along with robust capital buffers. Their asset quality also improved during the year.

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Comprehensive Overview Of Financial Sector

The report presents the performance of the banking sector, including commercial banks, co-operative banks and non-banking financial institutions, during 2024–25 and 2025–26 so far.

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