ENA Sectors 2025-12-30 16:20:05 <p><span style="font-size:14px"><strong>New Delhi, Dec 30 (KNN)</strong> The Reserve Bank of India (RBI) on Monday released the Report on Trend and Progress of Banking in India 2024-25 in compliance with Section 36(2) of the Banking Regulation Act, 1949. </span></p> <p><span style="font-size:14px">The report reviews the performance of Indias banking and financial sector, including commercial banks, co-operative banks and non-banking financial institutions (NBFCs), during 2024-25 and developments in 2025-26 so far.</span></p> <p><strong><span style="font-size:14px">Commercial Banks Remain Resilient</span></strong></p> <p><span style="font-size:14px">According to the report, the Indian commercial banking sector remained resilient in 2024-25, supported by double-digit balance sheet expansion. </span></p> <p><span style="font-size:14px">Deposits and credit of scheduled commercial banks (SCBs) continued to grow at double-digit rates, although at a slower pace compared to the previous year.</span></p> <p><span style="font-size:14px">Capital adequacy remained comfortable, with the capital to risk-weighted assets ratio (CRAR) of SCBs at 17.4 per cent at end-March 2025 and 17.2 per cent at end-September 2025.</span></p> <p><strong><span style="font-size:14px">Asset Quality at Multi-Decadal Lows</span></strong></p> <p><span style="font-size:14px">Asset quality strengthened further during the year. The gross non-performing assets (GNPA) ratio of SCBs declined to a multi-decadal low of 2.2 per cent at end-March 2025 and improved further to 2.1 per cent by end-September 2025.</span></p> <p><strong><span style="font-size:14px">Profitability Holds Firm</span></strong></p> <p><span style="font-size:14px">Profitability indicators remained robust. Return on assets (RoA) stood at 1.4 per cent and return on equity (RoE) at 13.5 per cent in 2024-25. During the first half of 2025-26, RoA moderated slightly to 1.3 per cent, while RoE declined to 12.5 per cent.</span></p> <p><strong><span style="font-size:14px">Co-operative Banks and NBFCs Show Improvement</span></strong></p> <p><span style="font-size:14px">The consolidated balance sheet of urban co-operative banks recorded stronger growth in 2024-25 compared with the previous year. Their asset quality improved for the fourth consecutive year, alongside gains in capital buffers and profitability.</span></p> <p><span style="font-size:14px">NBFCs continued to register double-digit credit growth, supported by robust capital positions. The sector also reported an improvement in asset quality during the year.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 44593 https://knnindia.co.in/news/newsdetails/sectors/banking-sector-remains-resilient-in-2024-25-npas-at-multi-decadal-lows-rbi-report 2025-12-30 16:20:05 knnindia.co.in