Issued by the Reserve Bank of India (RBI) in the country banking According to the report based on the trend and progress of the Bank of India, the performance of the country’s banks was quite strong in the last financial year. There has been an improvement in the overall performance of the banking sector (Indian Banking Performance 2024-25), the biggest indication of which is the huge decline in bad loans and increasing profits.
According to the report, by the end of March 2025, the gross non-performing loans (GNPA) ratio of commercial banks has come down to 2.2 percent, which is the lowest level in several decades. RBI said that during 2024-25, the banking sector was supported by strong balance sheet, better profitability and improved asset quality.
Under the overall performance of the banking sector (Indian Banking Performance 2024-25), it was also revealed that bank credit and deposit growth remained in double digits throughout the year. Capital adequacy and liquidity positions remained in excess of regulatory requirements across all bank groups, strengthening financial stability and confidence.
It was told in the report that the net profit of commercial banks did increase during 2024-25, but its pace was somewhat slower than last year. The combined net profit of all commercial banks rose 14.8 per cent year-on-year to Rs 4.01 lakh crore. Earlier, the profit of banks in 2023-24 had reached about Rs 3.5 lakh crore with a sharp increase of 32.8 percent.
The situation of urban cooperative banks has also been described as positive in the RBI report. The integrated balance sheet of urban co-operative banks recorded higher growth during 2024-25 compared to the previous year. Their asset quality has improved for the fourth consecutive year, while capital and profitability also remain strong.
Talking about non-banking financial companies, according to the report they also continued to register double-digit growth with strong capital buffers. Their asset quality also improved during the year, which strengthened the overall financial system.
RBI has clarified that so far the entire banking sector including commercial banks, co-operative banks and NBFCs has shown balanced and stable performance in the period 2024-25 and 2025-26. The overall performance of the banking sector (Indian Banking Performance 2024-25) has indicated that the Indian banking system is more capable and stronger than ever before to face economic challenges.
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