RBI Data: India’s Banking Sector Hits 20-Year NPA Low; Records Strongest Profit SurgeIndia’s banking sector has achieved a historic milestone, recording its lowest level of Gross Non-Performing Assets (GNPAs) in 20 years, which declined from 11.46% (in 2018) to 2.31% (by March 2025), the lowest in 20 years.
- This decline was mainly driven by robust macro-economic fundamentals boosting the Indian banking and Non-Banking Financial (NBFC) sectors.
- Similarly, Net NPA (NNPA) ratio dropped its lowest in the last 2 decades i.e. to 0.52% compared to 6.1% (in 2018), driven by stronger provision buffers.
Key Findings:
GNPA of PSBs and SCBs: As per the official data, GNPAs of Public Sector Banks (PSBs) declined from 9.11% (March 2021) to 2.58% (March 2025).
NNPAs of PSBs: The data also showed that NNPAs of PSBs decreased from 1.24% in Financial Year 2022-23 (FY23) to 0.52% (in FY25).
Bank Deposits and Credit Tripled: The data showed that domestic deposits and credits have nearly tripled in the last 10 years, with deposits increasing from Rs 88.35 lakh crore (2015) to Rs 231.90 lakh crore (2025) and credit rising from Rs 66.91 lakh crore (2015) to Rs 181.34 lakh crore (2025).
Banks Profitability: The total business of PSBs increased from Rs 203 lakh crore in Financial Year 22-23 (FY23) to Rs 252 lakh crore (FY25).
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- The net profit of these banks surged from Rs 1.05 lakh crore to Rs 1.78 lakh crore during the same time period.
- SCBs Profit: SCBs registered their highest ever aggregate net profit of Rs 4.01 lakh crore (in FY25 ) over Rs 3.5 lakh crore (in FY24).
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