As of September 2025, the important thing ratio stood at a multi-decade low of two.1 per cent, the central financial institution stated in its half-yearly Monetary Stability Report.
“The combination GNPA ratio of the 46 banks might enhance from 2.1 per cent in September 2025 to 1.9 per cent in March 2027 underneath the baseline situation,” the report stated.
The GNPA ratio might rise to three.2 per cent and 4.2 per cent underneath opposed situations, the Reserve Financial institution of India (RBI) stated, pointing to outcomes of its stress assessments.
From a capital buffers perspective, the report stated, the capital to risk-weighted property ratio (CRAR) remained robust as of September, with state-owned banks at 16 per cent and personal sector banks at 18.1 per cent.
Banks will have the ability to face up to opposed financial shocks, the report stated, itemizing out how the capital buffers will probably be impacted in opposed occasions.
The combination CRAR of 46 main Scheduled Industrial Banks (SCBs) might drop from 17.1 per cent in September 2025 to 16.8 per cent by March 2027 underneath the baseline situation, the report stated, including that it could fall to 14.5 per cent and 14.1 per cent underneath the hypothetical opposed situations, which bear in mind progress slowdown, and international headwinds, amongst others.”Stress assessments indicated comparatively greater depletion within the capital of public sector banks as in comparison with non-public banks and international banks,” it stated.
Six banks with a share of 15 per cent in scheduled industrial banks’ complete property would breach the regulatory minimal stage of CRAR underneath a extreme shock, it added.
In what could be interpreted as a optimistic for the system, the RBI examine has discovered that the focus of the top-100 debtors waned within the final two years.
The share of huge debtors in complete credit score of SCBs remained regular at round 44 per cent, however their share in gross NPAs declined considerably over the previous few years to 33.8 per cent as of September 2025, it stated.
From an earnings perspective, the RBI report stated the expansion within the core web curiosity revenue declined sharply to 2.3 per cent in September 2025 throughout all financial institution teams, amid the sharp price cuts by the central financial institution.
The online curiosity margin (NIM) recorded a broad-based 0.20 per cent fall in September 2025 over March 2025 because of a comparatively greater decline in yield on property than in price of funds, it added.
