NEW DELHI, May 30: India’s banking sector has achieved a major milestone with gross non-performing assets (GNPAs) falling to a multi-decade low of 2.1 per cent during FY26, according to the Reserve Bank of India.
The central bank said banks continued to strengthen their balance sheets through improved asset quality, higher provisioning and healthy capital adequacy levels. Net NPAs also declined to a record low, reflecting stronger recovery efforts and prudent lending practices.
The RBI noted that stress tests conducted during the year reaffirmed the sector’s ability to withstand adverse economic conditions while maintaining capital levels above regulatory requirements.
Credit growth remained robust across sectors, particularly in industry, services and retail lending, supporting broader economic activity and financial stability.