Reserve Bank of India (RBI) records gross NPAs at 10-year low of 2.1%

Key facts

• Gross non-performing assets (GNPAs) have fallen to a decadal low of 2.1%.
• The ratio of special mention accounts overdue by 61-90 days (SMA-2) declined to 0.8% as of end-September 2025.
• In the MSME sector, the SMA ratio eased to 5.1%.
• Stress in unsecured loans moderated sharply, with the SMA-2 ratio falling to 13% from more than 20% a year earlier.
• Credit costs for the system are expected to be around 0.6% in the December quarter.
• Fresh stress formation among large borrowers improved, with the SMA-2 ratio declining nearly 36% in September 2025.
• 69% of gold loan disbursements were to prime-and-above borrowers.
• Private sector banks disbursed over 70% of consumer loans to prime-and-above borrowers.