MoS Finance Pankaj Chaudhary announces Scheduled Commercial Banks' Gross NPAs fall to record 2.15% in September 2025
[Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI)]
Key Updates:
- Gross NPAs of Scheduled Commercial Banks (SCBs) for domestic operations declined to a historic low of 2.15% as of September 2025.
- Public sector banks (PSBs) recorded a gross NPA ratio of 2.50%, private sector banks 1.73%, and foreign banks 0.80% as on 30 September 2025.
- The slippage ratio for PSBs fell to 0.8% in September 2025, lower than the 1.8% recorded by private sector banks.
- Over 30,000 pre-admission cases involving defaults of ₹13.78 lakh crore were settled under the Insolvency and Bankruptcy Code (IBC) as of March 2025.
- The Reserve Bank of India (RBI) initiated the Asset Quality Review in 2015, followed by the government's 4R strategy: recognition, resolution, recapitalisation, and reforms.
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- India Ratings & Research expects advances growth to remain at 13% for FY27, unchanged from FY26.
- Deposit growth is forecast at 11.4% in FY27, up from 10.7% in FY26.
- The loan-to-deposit ratio is projected to rise to 83.2% in FY27 from 81.9% in FY26 and 80.3% in FY25.
- Banks are expected to bridge the funding gap by tapping the certificate of deposit and corporate bond markets.
- Gross non-performing assets are projected to fall to 1.9% in FY26 and 1.7% in FY27 from 2.2% in FY25.
- Non-bank finance companies are projected to record moderated loan growth of 15%-16% in FY27, down from 18% in FY26.
- 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.
- Banking system loan-to-deposit ratio reached an all-time high of 81%.
- HDFC Bank loans grew 12% year-on-year while deposits rose 11.5%.
- HDFC Bank gross advances stood at ₹28.44 lakh crore and total deposits at ₹28.59 lakh crore.
- Bank of Baroda global advances rose 14.57% year-on-year to ₹13.44 lakh crore and global deposits grew 10.25% to ₹15.47 lakh crore.
- Punjab National Bank global deposits increased 8.5% to ₹16.6 lakh crore and global advances expanded 11% to ₹12.32 lakh crore.
- Union Bank of India global deposits rose 3.4% to ₹12.22 lakh crore and advances grew 7.13% to ₹10.16 lakh crore.
- Axis Bank gross advances increased 14.1% to ₹11.70 lakh crore and deposits grew 15% to ₹12.60 lakh crore.
- Kotak Mahindra Bank net advances grew 16% to ₹4.80 lakh crore and deposits rose 14.6% to ₹5.42 lakh crore.
- Yes Bank advances rose 5.2% to ₹2.57 lakh crore and deposits grew 5.5% to ₹2.92 lakh crore.
- RBL Bank deposits increased 12% to ₹1.19 lakh crore and advances rose 13% to ₹1.04 lakh crore.
- IndusInd Bank net advances dropped 13.1% to ₹3.18 lakh crore and deposits fell 3.8% to ₹3.94 lakh crore.
- Bajaj Finance assets under management rose 22% year-on-year to around ₹4.85 lakh crore.
- Poonawalla Fincorp AUM grew 77.5% year-on-year to ₹55,000 crore.
- M&M Finance business assets grew about 12% to nearly ₹1.29 lakh crore.
- Gross Non-Performing Assets (NPAs) dropped to 2.31% by March 2025.
- Gross NPAs peaked at 11.46% in 2018.
- Net NPAs declined to 0.52%.
- Public Sector Banks (PSBs) reduced Gross NPAs from 9.11% in 2021 to 2.58% in 2025.
- Domestic deposits increased from ₹88.35 lakh crore in 2015 to ₹231.90 lakh crore in 2025.
- Credit grew from ₹66.91 lakh crore to ₹181.34 lakh crore between 2015 and 2025.
- Capital to Risk-Weighted Assets Ratio (CRAR) improved from 12.94% in 2015 to 17.36% in 2025.
- Common Equity Tier 1 (CET-1) ratio reached 14.81%.
- Public Sector Bank (PSB) profits rose from ₹1.05 lakh crore in FY 2022–23 to ₹1.78 lakh crore in FY 2024–25.
- Scheduled Commercial Banks (SCBs) posted their highest ever earnings of ₹4.01 lakh crore in FY 2024–25.
- Scheduled Commercial Banks (SCBs) earned ₹1.02 lakh crore in the first quarter of FY26.
- Return on Assets (RoA) stood at 1.37%.
- Return on Equity (RoE) stood at 14.1%.
- Key reforms include the Asset Quality Review (2015) and the Insolvency and Bankruptcy Code (2016).
- The Reserve Bank of India (RBI) proposed the Expected Credit Loss (ECL) framework in 2025.
Asian Development Bank (ADB) approves USD 182 million loan for Assam flood management
[Asian Development Bank (ADB), Assam]
Key Updates:
- The Asian Development Bank (ADB) has approved USD 182 million in additional financing to strengthen Assam's resilience to chronic flooding and riverbank erosion along the Brahmaputra.
- The funding supplements the ongoing USD 200 million Climate Resilient Brahmaputra Integrated Flood and Riverbank Erosion Risk Management Project approved in October 2023.
- The project will extend integrated risk management measures into four additional high-priority reaches of the Brahmaputra river.
- The initiative is expected to directly benefit approximately 600,000 rural residents, including poor households, women, and disadvantaged groups.
- Under the expanded scope, ADB will support the construction of 63.5 kilometres of riverbank protection and the installation of pro-siltation measures to reclaim eroded land.
- Nature-based solutions, including reed propagation and wetland restoration, will be implemented to reduce flooding and improve ecological resilience.
- The financing will enhance knowledge-based river management through flood risk maps, asset condition surveys, erosion prediction models, and early warning systems.
- The project includes community disaster preparedness programmes and the upgrading of disaster-resilient flood embankments.
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- The World Bank (WB) has approved Rs 5,700 crore for Haryana under the ‘Jal Sanrakshit Haryana Project’ to be released in phases between 2026 and 2032.
- The project will restore 115 canals at Rs 2,325 crore with WB support, 284 canals at Rs 2,230 crore from the state budget, and 279 canals at Rs 2,880 crore through NABARD funding.
- Of 15,562 minor canals, 400 will be restored at Rs 450 crore with WB assistance, 1,500 at Rs 1,250 crore by the state, and 61 at Rs 402 crore via NABARD.
- WB will provide Rs 900 crore for micro-irrigation across nearly 70,000 acres and Rs 600 crore to reuse treated sewage water to irrigate 28,000 acres in Jind, Kaithal and Gurugram.
- Around 80 new water bodies will be built in southern Haryana for groundwater recharge and Rs 886 crore will promote crop diversification, direct rice seeding and water-saving practices.
- Asian Development Bank (ADB) has in-principle agreed to extend Rs 4,100 crore (USD 500 million) to the Telangana Government for parts of phase-I of Musi River Development Project.
- The state government has submitted a preliminary project report to the Ministry of Jal Shakti seeking Rs 3,188 crore under the National River Conservation Plan for the Musi river project.
- The entire project is divided into five zones; the Detailed Project Report for Zone I is in progress and 21 km of the total 55 km in Zone-I is being undertaken by Musi Riverfront Development Corporation (MRDCL).
- The Asian Development Bank (ADB) approved the Integrated Ecotourism and Sustainable Agri-Based Livelihood Development in Meghalaya Project.
- The project involves a $77 million loan and an additional $1 million technical assistance grant from ADB.
- It aims to generate economic opportunities for more than 8,000 local people, including women and Indigenous communities, in Meghalaya.
- The approval for the project was made on 27 November 2025.
- The Asian Development Bank (ADB) approved a $400 million results-based lending (RBL) program.
- The program aims to improve road connectivity in Maharashtra.
- The upgrades cover nearly 350 kilometers of state highways and 2,577 kilometers of rural roads.
- The loan will improve road connectivity in 34 districts, particularly in the Marathwada and Vidarbha regions.
- Over 1.7 million people, including residents of at least 80 villages and around 410 rural communities, will benefit.
Garden Reach Shipbuilders and Engineers (GRSE) and Hindustan Shipyard Limited (HSL) sign MoU to form shipbuilding consortium
[Garden Reach Shipbuilders and Engineers (GRSE), Hindustan Shipyard Limited (HSL)]
Key Updates:
- Garden Reach Shipbuilders & Engineers (GRSE) and Hindustan Shipyard Limited (HSL) signed an MoU in Kolkata on Monday to form a consortium for a national shipbuilding programme.
- The consortium will undertake construction of maritime platforms and support India’s maritime infrastructure and operational capability.
- The MoU was signed by Cdr Shantanu Bose, IN (Retd.), Director (Shipbuilding) at GRSE, and Capt Ganti Venkateswarlu, IN (Retd.), Officiating Chairman and Managing Director at HSL, in the presence of senior officials from both organisations.
- GRSE and HSL stated the consortium will leverage the strengths of both shipyards to expand indigenous shipbuilding capacity and contribute to technological self-reliance.
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- Ministry of Skill Development and Entrepreneurship (MSDE) signed an MoU with the World Economic Forum (WEF) to launch and implement a Skills Accelerator in India.
- The Accelerator is a multistakeholder platform aimed at identifying, scaling, and accelerating innovative solutions and public–private partnerships to address critical skills gaps in the workforce.
- It will strengthen India’s technical and vocational education and training ecosystem by aligning skilling initiatives with industry and global economy demands.
- The Union Government signed an MoU on 4 February 2026 to establish the Bharat Container Shipping Line (BCSL) under the Ministry of Ports, Shipping and Waterways (MoPSW).
- The MoU was signed among Shipping Corporation of India (SCI), Container Corporation of India (CONCOR), Jawaharlal Nehru Port Authority, V.O. Chidambaranar Port Authority (VOCPA), Chennai Port Authority, and Sagarmala Finance Corporation Limited (SMFCL).
- A separate tripartite MoU was signed between VOCPA, Indian Railway Finance Corporation Limited (IRFC), and Sagarmala Finance Corporation Limited (SMFCL) to finance the Outer Harbour Project at Tuticorin.
- The agreements provide for joint funding of up to ₹15,000 crore for eligible projects to expand port capacity under the Sagarmala Programme and the PM Gati Shakti National Master Plan.
- The financing framework will use a Hybrid Annuity Model (HAM) focusing on debt funding for breakwater construction and allied onshore-offshore facilities.
- The initiatives align with the Container Manufacturing Assistance Scheme (CMAS) announced in Union Budget 2026-27 and support the Maritime Amrit Kaal 2047 vision.
- Reliance Industries Ltd and Oil and Natural Gas Corporation Ltd (ONGC) signed an MoU on the sidelines of India Energy Week (IEW) to share offshore supply vessels and other resources.
- The pact targets enhanced operational efficiency, faster execution of offshore projects, and stronger synergies between India's largest oil and gas producer and the nation's most valuable company.
- The collaboration aims to allow a vessel approved by authorities to move between adjacent blocks, such as ONGC’s KG-DWN-98/2 and Reliance-BP’s KG-DWN-98/3 in the Krishna Godavari basin, without fresh approvals.
- Currently, securing fresh approvals for a foreign-flagged offshore supply vessel from the ministries of defence and home affairs and the director general of shipping takes 45 days and is area- and duration-specific.
- The companies will jointly approach the government to permit use of any fully-approved vessel anywhere in the Indian sedimentary basin.
- This is the second recent collaboration between ONGC and Reliance after they partnered with BP in 2024 to bid for the 5,454-sq-km Block GS-OSHP-2022/2 in the Saurashtra Basin under Open Acreage Licensing Policy (OALP) bid round IX.
- GAIL (India) Ltd will take an equity stake in a Singapore-based LNG ship-owning company through its wholly owned subsidiary GAIL Global IFSC Ltd registered in Gujarat International Finance Tec-City (GIFT City).
- The LNG vessel is under construction in South Korea and is linked to a long-term charter signed by GAIL.
- Kawasaki Kisen Kaisha Ltd (K LINE) and J M Baxi Marine Services will also be equity partners in the ship-owning company.
- GAIL already holds a 26 per cent stake in the LNG carrier ‘GAIL Bhuwan’ hired from Japan’s Mitsui O.S.K. Lines Ltd.
Indian Pharmacopoeia Commission (IPC) signs three MoUs to strengthen drug safety
[Indian Pharmaceutical Congress (IPC), Gujarat State Petroleum Corporation (GSPC), Quality Council of India (QCI), HLL Infra Tech Services (HITES)]
Key Updates:
- The Indian Pharmacopoeia Commission (IPC), an autonomous body under the Ministry of Health and Family Welfare, signed memoranda of understanding (MoU) with the Goa State Pharmacy Council (GSPC), Quality Council of India (QCI), and HLL Infra Tech Services Limited.
- The agreements aim to strengthen pharmacovigilance systems, enhance professional competencies, and promote uniform standards for medicine quality and patient safety across India.
- The MoU with the GSPC focuses on the professional development of pharmacists, promotion of the National Formulary of India, and strengthening adverse drug reaction (ADR) reporting mechanisms.
- The collaboration with the GSPC supports the establishment of ADR Monitoring Centres and enhances systematic reporting and documentation practices across healthcare facilities.
- The IPC and the QCI will collaborate on quality promotion, public health awareness, and capacity building through joint training and awareness programmes in pharmacovigilance.
- Harsh Mangla, Joint Secretary in the Ministry of Health and Family Welfare, emphasised that the MoUs must translate into the achievement of objectives to improve primary and secondary healthcare.
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- India and Liberia signed an MoU to strengthen cooperation in the field of pharmacopoeia.
- The agreement was signed by India's Ambassador to Liberia, Manoj Bihari Verma, and Liberia's Health Minister, Louise M. Kpoto.
- The MoU enables Liberia to adopt the Indian Pharmacopoeia as a reference for medicine quality standards.
- The agreement aims to promote shared quality standards and regulatory alignment between the two countries.
- India has removed mandatory quality checks (Quality Control Orders - QCOs) on numerous raw materials, including textiles, plastics, and metals.
- This move aims to reduce delays and costs for businesses, especially MSMEs.
- The withdrawal, notified on November 13, eliminates mandatory BIS certification for 14 products under the Chemicals & Petrochemicals Ministry and six under the Mines Ministry.
- The list of affected inputs includes PTA, MEG, polyester fibres, polypropylene, polyethylene, PVC resin, ABS, polycarbonate, and metals such as aluminium, lead, nickel, tin and zinc.
- The reforms flow from the Gauba Committee’s findings, which noted that QCOs grew significantly, many covering raw materials without direct safety implications.
- The rollback is expected to immediately ease sourcing pressures in textile hubs like Surat, Ludhiana, Tiruppur and Bhilwara, and among plastics processors, nearly 90% of whom are MSMEs.
- The withdrawal of QCOs for metals restores supply flexibility for downstream sectors including auto components, electronics, batteries, construction and defence.
- India now stands at the 8th position globally in World Health Organization (WHO) Pharmacovigilance Contributions, rising from the 123rd position held ten years ago.
- The Ministry of Health and Family Welfare released the 10th edition of the Indian Pharmacopoeia (IP) 2026, which serves as the official book of drug standards for India.
- The Indian Pharmacopoeia (IP) 2026 has incorporated 121 new monographs, increasing the total count to 3,340 monographs.
- India has become the first country to include 20 blood component monographs to expand research in blood transfusion, thalassemia, hemophilia, and anaemia.
- The new monographs are designed to benefit the National TB Elimination Programme, Anaemia Mukt Bharat, and the Universal Immunisation Programme.
- The Indian Pharmacopoeia (IP) is currently recognized as a standard in 19 Global South countries.
- Finance Minister Nirmala Sitharaman announced the complete removal of basic customs duty on 17 cancer-related drugs and medicines in the Union Budget 2026–27.
- Customs duty relief was extended to seven additional rare diseases, exempting personal imports of drugs, medicines, and foods for special medical needs.
- The exemption aims to reduce the financial burden on patients relying on imported oncology medicines for complex and advanced treatments.
- The measure is intended to lower out-of-pocket expenditure for patients, particularly those lacking comprehensive health insurance coverage.
- The Union Budget 2026–27 also provided a 69% increase in funding for the Intelligence Bureau (IB) to strengthen internal security.
Corruption Perceptions Index (CPI) 2025 released by Transparency International
[Transparency International]
Key Updates:
- Transparency International released the Corruption Perceptions Index (CPI) 2025 covering 182 countries and territories.
- India improved its rank to 91st from 96th in the previous year.
- India’s CPI score rose by one point to 39 in 2025.
- The CPI scale ranges from 0 (highly corrupt) to 100 (very clean).
- Denmark topped the index with 89 points, followed by Finland and Singapore.
- South Sudan and Somalia shared the lowest score of 9 points.
- The United States (US) was ranked 29th and the United Kingdom (UK) 20th.
- The report listed India among countries dangerous for journalists reporting on corruption.
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- Brand Finance released the Global Soft Power Index 2026, which ranks 193 United Nations (UN) member states across 55 metrics.
- The United States (US) retained the top position with a score of 74.9 out of 100, despite recording the sharpest decline of 4.6 points compared to the previous year.
- China secured the second rank with a score of 73.5 and was the only country in the index to record an increase in its soft power score.
- India ranked 32nd globally with a score of 48.0, slipping two positions and declining by 1.8 points from the previous year.
- India achieved high rankings in specific indicators including familiarity (13th), influence (17th), and culture and heritage (19th).
- India recorded weaker scores in reputation (73rd), governance (100th), and net positive impact (123rd).
- The top 10 countries in the 2026 index are the US, China, Japan, United Kingdom (UK), Germany, France, Switzerland, Canada, Italy, and the United Arab Emirates (UAE).
- The UK fell to the fourth position with a score of 69.2, marking its lowest rank since the inception of the index.
- Switzerland was identified as the most resilient country, ranking 1st in reputation, trust, effective governance, and economic stability.
- Soft power is defined in the report as a nation’s ability to shape preferences and behaviours through attraction and persuasion rather than coercion.
- The eleventh session of the Conference of the States Parties to the United Nations Convention against Corruption (UNCAC) took place in Doha, Qatar, on 15-19 December 2025.
- The Conference is the largest global anti-corruption gathering and brought together representatives from governments, regional and intergovernmental organizations, civil society, and the private sector.
- Under the theme 'Shaping Tomorrow's Integrity', participants discussed emerging threats in the fight against corruption and explored ways to harness AI and new technologies to strengthen international cooperation against complex criminal activities.
- The UN Convention against Corruption (UNCAC) is the only legally binding universal anti-corruption instrument and enjoys near universal adherence.
- The UNODC GlobE Network connects law enforcement and anti-corruption investigators worldwide, enabling fast, direct cooperation and information sharing on cross-border corruption cases.
- The International Anti-Corruption Excellence Award Ceremony recognized individuals and initiatives driving integrity, accountability, and progress against corruption.
- The 5th Anti-Corruption Academic Symposium focused on how Artificial Intelligence can support the fight against corruption.
- International Anti-Corruption Day is observed globally on December 9 every year.
- The theme for International Anti-Corruption Day 2025 is “Uniting with Youth Against Corruption: Shaping Tomorrow’s Integrity.”
- The origins of International Anti-Corruption Day trace back to October 31, 2003, when the United Nations General Assembly approved the United Nations Convention Against Corruption (UNCAC).
- The United Nations Convention Against Corruption (UNCAC) became the first globally recognized legal instrument dedicated to combating corruption.
- The United Nations Convention Against Corruption (UNCAC) officially came into force in December 2005.
- Singapore ranked first and India 16th in the Responsible Nations' Index (RNI) launched by former president Ram Nath Kovind.
- The RNI is a global evaluative framework developed by the think tank World Intellectual Foundation (WIF) in academic collaboration with Jawaharlal Nehru University (JNU) and methodological validation by the Indian Institute of Management (IIM), Mumbai.
- The index is anchored in three core dimensions -- internal responsibility, environmental responsibility and external responsibility.
- The RNI has been operationalised through seven dimensions, 15 aspects and 58 indicators.
- Switzerland was second, Denmark third and the Central African Republic stood last on the 154-nation index.
- Sudhanshu Mittal, Founder and Secretary, WIF, said the RNI represents a shift from power-centric assessments to responsibility-centric evaluation of nations.
- India's neighbour Pakistan was in the 90th place, while China was ranked 68th and the US 66th, according to the RNI.