MoS Finance Pankaj Chaudhary reports Scheduled Commercial Banks (SCBs) Gross NPAs at historic low of 2.15%

Key facts

• The Gross Non-Performing Assets (NPAs) ratio of Scheduled Commercial Banks (SCBs) for domestic operations declined to a historic low of 2.15% as of September 2025.
• According to provisional data from the Reserve Bank of India (RBI), the Gross NPA ratio stood at 2.50% for Public Sector Banks (PSBs), 1.73% for Private Sector Banks (PVBs), and 0.80% for foreign banks.
• The slippage ratio for PSBs improved to 0.8% in September 2025, compared with 1.8% for private sector banks, indicating stronger underwriting standards.
• The government and RBI implemented the 4R’s strategy involving transparent recognition of NPAs, resolving and recovering value, recapitalising PSBs, and reforms in the financial ecosystem.
• As of March 2025, over 30,000 cases involving underlying defaults of ₹13.78 lakh crore were settled at the pre-admission stage under the Insolvency and Bankruptcy Code (IBC) 2016.
• Recovery measures include amendments to the SARFAESI Act, expansion of Debt Recovery Tribunals (DRTs), and enhanced oversight of Asset Reconstruction Companies (ARCs).
• Public sector banks have adopted automated Early Warning Systems (EWS) with nearly 80 triggers and established specialised stressed asset management verticals.
• The Asset Quality Review (AQR) initiated by the RBI in 2015 and mandatory registration of security interests with CERSAI were cited as key regulatory contributors to asset quality improvement.