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India’s banking sector remained resilient in 2025-26, with the gross non-performing assets (GNPA) ratio of scheduled commercial banks declining to a multi-decadal low, according to the Reserve Bank of India’s Annual Report 2025-26.
The RBI said profitability of scheduled commercial banks remained robust during the year, supported by improved asset quality and healthy capital buffers. The capital to risk-weighted assets ratio (CRAR) also stayed comfortably above the regulatory requirement.
The central bank noted that stress test results reaffirmed the resilience of banks, indicating their ability to withstand adverse scenarios while maintaining capital buffers above the minimum prescribed levels. Asset quality and capital adequacy of non-banking financial companies (NBFCs) also remained robust during the year, the report said.
Bank credit to the commercial sector grew 15.9% year-on-year in 2025-26, compared with 10.9% growth a year earlier. Credit from non-bank sources rose 13.3% during the year, underscoring their role in credit intermediation, according to the report.
The RBI added that credit growth outpaced deposit growth, resulting in an increase in the credit-deposit ratio during the year. Urban co-operative banks also recorded improvement in credit and deposit growth alongside stronger profitability and capital buffers during April-December 2025.
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The RBI said profitability of scheduled commercial banks remained robust during the year, supported by improved asset quality and healthy capital buffers. The capital to risk-weighted assets ratio (CRAR) also stayed comfortably above the regulatory requirement.
The central bank noted that stress test results reaffirmed the resilience of banks, indicating their ability to withstand adverse scenarios while maintaining capital buffers above the minimum prescribed levels. Asset quality and capital adequacy of non-banking financial companies (NBFCs) also remained robust during the year, the report said.
Bank credit to the commercial sector grew 15.9% year-on-year in 2025-26, compared with 10.9% growth a year earlier. Credit from non-bank sources rose 13.3% during the year, underscoring their role in credit intermediation, according to the report.
The RBI added that credit growth outpaced deposit growth, resulting in an increase in the credit-deposit ratio during the year. Urban co-operative banks also recorded improvement in credit and deposit growth alongside stronger profitability and capital buffers during April-December 2025.
ALSO READ | BofA sees limited Nifty upside in 2026, spots new growth themes
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