RBI Report on Trend and Progress of Banking in India 2024-25

On 29th December 2025, the Reserve Bank of India released a Report on Trend and Progress of Banking in India 2024-25, highlighting the continued resilience of India’s banking sector amid moderating growth conditions.

Key Points

Overall Sector Resilience: The banking sector remained resilient in FY25, supported by strong balance sheet growth, improved asset quality, and robust profitability.
Balance Sheet Growth: Scheduled Commercial Banks (SCBs) recorded double-digit expansion in balance sheets during FY25, though at a slower pace compared to FY24.
Deposit and Credit Growth: Deposits and credit of SCBs both grew in double digits during FY25, albeit with moderation from the previous financial year.
Improvement in Asset Quality: The Gross Non-Performing Assets (GNPA) ratio declined to a multi-decadal low of 2.2% at end-March 2025.
Further GNPA Decline: GNPA ratio improved further to 2.1% by end-September 2025, reflecting sustained stress resolution and improved credit underwriting standards.