New Delhi: The Indian industrial banking sector remained resilient throughout 2024-25 and 2025-26 to date, supported by double-digit steadiness sheet enlargement whereas asset high quality strengthened additional, with the gross non-performing belongings (GNPA) ratio declining to a multi-decadal low of two.1 per cent at end-September this 12 months, in accordance with an RBI report launched on Monday. 

Deposits and credit score of scheduled industrial banks additionally grew in double digits, albeit with a moderation from the earlier 12 months, the RBI report on the “Pattern and Progress of Banking in India”, acknowledged.

Asset high quality strengthened additional, with the gross non-performing belongings (GNPA) ratio declining to a multi-decadal low of two.2 per cent at end-March 2025 and a pair of.1 per cent at end-September 2025.

Profitability of the SCBs remained sturdy with the return on belongings (RoA) at 1.4 per cent and return on fairness (RoE) at 13.5 per cent in 2024-25. Throughout H1: 2025-26, RoA and RoE of the SCBs stood at 1.3 per cent and 12.5 per cent, respectively.

The capital-to-risk-weighted belongings ratio of scheduled industrial banks (SCBs) was 17.4 per cent at end-March 2025 and 17.2 per cent at end-September 2025.

The consolidated steadiness sheet of city co-operative banks recorded increased progress in 2024-25 than that within the earlier 12 months. Their asset high quality improved for the fourth consecutive 12 months, alongside the strengthening of their capital buffers and profitability.

The non-banking monetary firms continued to file double-digit credit score progress together with sturdy capital buffers. Their asset high quality additionally improved throughout the 12 months.

The RBI’s “evaluation” acknowledged that banks and NBFCs stay resilient, backed by robust capital buffers, improved asset high quality, and sturdy earnings, guaranteeing credit score move to productive sectors and the underserved inhabitants.

The Reserve Financial institution continues to drive safe and interoperable digital funds domestically and their integration with international funds programs. It is usually enabling accountable adoption of expertise and using different knowledge to develop monetary inclusion. Its regulatory and supervisory insurance policies stay centered on reinforcing cybersecurity, mitigating fraud, enhancing buyer safety, integrating local weather threat consciousness, and preserving monetary stability as an overarching aim. Balancing monetary improvements with stability, strengthening public belief, and supporting sustainable improvement will proceed to information the Reserve Financial institution’s insurance policies going ahead, the report mentioned.

Rules and macroprudential insurance policies are being aligned to additional strengthen the resilience and competitiveness of the banking sector, whereas selling ease of doing enterprise. Going ahead, balancing innovation with stability, supported by prudent regulation and supervision, can be essential for guaranteeing a resilient monetary system, the report added.