RBI flags further improvement in asset quality across Indian lenders

Anabelle Colaco
31 Dec 2025, 13:54 GMT+10

Indian banks’ asset quality improved to a multi-decadal low at the end of September 2025, according to a report released on December 29 by the Reserve Bank of India
Banks’ gross non-performing assets ratio — the proportion of bad loans to total advances — declined to 2.1 percent at the end of September 2025, down from 2.2 percent in March 2025
The RBI said banks’ deposits and credit grew in double-digit percentages during the 2024–2025 financial year, though growth moderated from the previous year

MUMBAI, India: Indian banks' asset quality improved to a multi-decadal low at the end of September 2025, according to a report released on December 29 by the Reserve Bank of India.

Banks' gross non-performing assets ratio — the proportion of bad loans to total advances — declined to 2.1 percent at the end of September 2025, down from 2.2 percent in March 2025, the central bank said in its Trend and Progress of Banking report.

The RBI said banks' deposits and credit grew in double-digit percentages during the 2024–2025 financial year, though growth moderated from the previous year.

The asset quality of non-bank finance companies also improved in 2024–2025, the report added, even as those firms recorded double-digit loan growth.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Malaysia Sun.

More Information

Southeast Asia

Section

RBI flags further improvement in asset quality across Indian lenders

MUMBAI, India: Indian banks' asset quality improved to a multi-decadal low at the end of September 2025, according to a report released...

Role in 1MDB scandal gets Malaysian ex-PM Razak 15 more years in jail

KUALA LUMPUR, Malaysia: In the most significant trial of the multibillion-dollar 1MDB scandal, Malaysia's influential former prime...

Price cuts, early launches fuel obesity drug showdown in India

HYDERABAD, India: With generic rivals waiting in the wings, Eli Lilly and Novo Nordisk are intensifying efforts to lock in market share...

Press freedom under siege in Balochistan as journalists face mounting threats: Report

Balochistan [Pakistan], December 31 (ANI): A new report by media watchdog Freedom Network has raised serious concerns over the worsening...

In six decades, Xizang's civil aviation soars to new heights

LHASA, Dec. 31 (Xinhua) -- Southwest China's Xizang Autonomous Region saw its annual passenger throughput surpass 8 million as of Monday...

Michael Vaughan calls on Khawaja to retire on his own terms ahead of Sydney Ashes Test

Sydney [Australia], December 31 (ANI): Former England captain Michael Vaughan has urged Australia's Usman Khawaja to retire on his...

Business

Section