Kolkata, New Delhi, INDIA. New York, USA.
Business To Business, Mumbai, 30th June, 2026: The Reserve Bank of India (RBI) on Tuesday said the gross non-performing assets (GNPA) ratio of Indian banks declined to a multi-decadal low of 1.8 per cent as of March 2026, reflecting continued improvement in the asset quality of the banking sector.
According to the RBI's bi-annual Financial Stability Report (FSR), the GNPA ratio is expected to edge up marginally to 1.9 per cent by March 2028 under the baseline scenario.
"The aggregate GNPA ratio of 46 banks may increase from 1.8 per cent in March 2026 to 1.9 per cent by March 2028 under the baseline scenario," the report said.
The central bank noted that the assessment comes against the backdrop of heightened global uncertainties, including headwinds arising from the West Asia conflict. Despite these risks, the projected increase in bad loans remains modest, indicating that the Indian banking system is expected to remain resilient with asset quality broadly stable over the medium term.