The Reserve Bank of India released its Report on Trend and Progress of Banking in India 2024-25 today. The report highlighted the continued resilience of the banking sector, backed by strong balance sheet growth, improved asset quality and robust profitability.

 

According to RBI, the banking sector remained resilient in FY25, supported by double-digit expansion in balance sheets, even as the pace of growth moderated compared with the previous financial year. Deposits and credit of scheduled commercial banks (SCBs) both grew in double digits during the year, though at a slower rate than in FY24.

 

Asset quality continued to improve, with the gross non-performing assets (GNPA) ratio declining to a multi-decadal low of 2.2 per cent in end-March 2025, and further to 2.1 per cent by end-September 2025, reflecting sustained stress resolution and better credit underwriting.

 

Profitability of banks remained robust during the year, with return on assets (RoA) at 1.4 per cent and return on equity (RoE) at 13.5 per cent in FY25, the RBI report said, underscoring the sector’s improved earnings profile. The central bank also flagged steady improvement across other segments of the financial system.