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Report on Trend and Progress of Banking in India for the year ended
March 31, 2025 submitted to the Central Government in terms of
Section 36(2) of the Banking Regulation Act, 1949
REPORT ON TREND AND PROGRESS
OF BANKING IN INDIA 2024-25
RESERVE BANK OF INDIA© Reserve Bank of India 2025
All rights reserved. Reproduction is permitted provided an acknowledgement of the source is made.
Published by Shri Binod B. Bhoi for the Reserve Bank of India, Mumbai 400 001 and designed
and printed by him at Jayant Printery LLP, 352/54, Girgaum Road, Murlidhar Temple Compound,
Near Thakurdwar Post Office, Mumbai - 400 002.Contents
Sr. No. Particulars Page No.
Chapter I: Perspectives
1. Introduction .......................................................................................................... 1
2. Regulation and Supervision ................................................................................... 2
3. Payment and Settlement Systems .......................................................................... 5
4. Adoption of Emerging Technologies ....................................................................... 6
5. Financial Inclusion ................................................................................................ 8
6. Consumer Protection ............................................................................................. 8
7. Climate Finance .................................................................................................... 10
8. Overall Assessment ............................................................................................... 10
Chapter II: Global Banking Developments
1. Introduction .......................................................................................................... 11
2. Global Macroeconomic Conditions ........................................................................ 12
3. Global Banking Policy Developments .................................................................... 14
4. Performance of the Global Banking Sector ............................................................ 19
5. World’s Largest Banks ........................................................................................... 23
6. Overall Assessment ............................................................................................... 25
Chapter III: Domestic Policy Environment
1. Introduction ......................................................................................................... 27
2. The Macroeconomic Policy Setting ........................................................................ 28
3. Regulatory and Supervisory Policies ...................................................................... 29
4. Technological Innovations ..................................................................................... 39
5. Financial Markets.................................................................................................. 40
6. Consumer Protection ............................................................................................. 42
7. Credit Delivery and Financial Inclusion ................................................................. 42
8. Payment and Settlement Systems .......................................................................... 43
9. Overall Assessment ............................................................................................... 45
Chapter IV: Commercial Banks
1. Introduction .......................................................................................................... 46
2. Balance Sheet Analysis .......................................................................................... 47
3. Financial Performance ........................................................................................... 54
vSr. No. Particulars Page No.
4. Soundness Indicators ............................................................................................ 57
5. Sectoral Bank Credit: Distribution and Non-performing Assets ............................ 66
6. Ownership Pattern ................................................................................................ 74
7. Corporate Governance .......................................................................................... 75
8. Foreign Banks’ Operations in India and Overseas Operations of Indian Banks ..... 76
9. Payment Systems .................................................................................................. 77
10. Technology Adoption ............................................................................................. 79
(Box IV.1: Evolving Technology and Innovation Priorities of Indian Banks)
11. Consumer Protection ............................................................................................. 79
12. Financial Inclusion ................................................................................................ 83
13. Regional Rural Banks ............................................................................................ 88
14. Local Area Banks .................................................................................................. 90
15. Small Finance Banks ............................................................................................ 91
16. Payments Banks .................................................................................................... 92
17. Overall Assessment ............................................................................................... 93
Chapter V: Co-operative Banks
1. Introduction .......................................................................................................... 95
2. Structure of the Co-operative Banking Sector ....................................................... 95
3. Urban Co-operative Banks .................................................................................... 97
4. Rural Credit Co-operatives .................................................................................... 105
5. Overall Assessment ............................................................................................... 115
Chapter VI: Non-Banking Financial Institutions
1 Introduction .......................................................................................................... 117
2 Non-Banking Financial Companies ........................................................................ 118
3 Housing Finance Companies ................................................................................. 134
4 All India Financial Institutions .............................................................................. 138
5 Primary Dealers .................................................................................................... 141
6 Overall Assessment ............................................................................................... 144
viList of Tables
Sr. No. Particulars Page No.
II.1 Regulations for Stablecoins in Select Economies ..................................................... 18
II.2 Asset Quality ........................................................................................................... 21
II.3 Regulatory Capital to Risk-weighted Assets Ratio .................................................... 22
IV.1 Consolidated Balance Sheet of Scheduled Commercial Banks ................................ 47
IV.2 Bank Group-wise Maturity Profile of Select Liabilities/Assets .................................. 53
IV.3 Trends in Income and Expenditure of Scheduled Commercial Banks ..................... 55
IV.4 Cost of Funds and Return on Funds - Bank Group-wise .......................................... 57
IV.5 Component-wise Capital Adequacy of SCBs ............................................................ 58
IV.6 Resources Raised by Banks through Private Placements ......................................... 59
IV.7 Leverage Ratio and Liquidity Coverage Ratio ........................................................... 59
IV.8 Net Stable Funding Ratio ........................................................................................ 59
IV.9 Non-Performing Assets by Bank Group ................................................................... 60
IV.10 Classification of Loan Assets by Bank Group .......................................................... 61
IV.11 NPAs of SCBs Recovered through Various Channels ................................................ 62
IV.12 Details of Financial Assets Securitised by Asset Reconstruction Companies ........... 64
IV.13 Frauds in Various Banking Operations Based on the Date of Reporting ................. 64
IV.14 Frauds in Various Banking Operations Based on the Date of Occurrence ................ 65
IV.15 Enforcement Actions ............................................................................................... 66
IV.16 Sectoral Deployment of Gross Bank Credit by SCBs ............................................... 67
IV.17 Credit Flow to the MSME Sector by SCBs ............................................................... 70
IV.18 Priority Sector Lending by Banks ............................................................................ 70
IV.19 Weighted Average Premium on Various Categories of PSLCs ................................... 72
IV.20 Sector-wise GNPAs of Banks ................................................................................... 72
IV.21 Independent Directors on the Board and its Committees ........................................ 75
IV.22 Operations of Foreign Banks in India ...................................................................... 76
IV.23 Payment Systems Indicators .................................................................................... 78
IV.24 Number of ATMs ..................................................................................................... 79
IV.25 Population Group-wise Distribution of ATMs of Bank Groups ................................ 79
IV.26 Number of Complaints Received by Offices of the RBI Ombudsman: Category-wise . 81
IV.27 Bank Group-wise Insured Deposits ......................................................................... 82
IV.28 Progress in Financial Inclusion Plan ........................................................................ 84
viiSr. No. Particulars Page No.
IV.29 Tier-wise Distribution of Newly Opened Bank Branches of SCBs ............................ 86
IV.30 Progress in MSME Financing through TReDS ......................................................... 88
IV.31 Consolidated Balance Sheet of Regional Rural Banks .............................................. 89
IV.32 Financial Performance of Regional Rural Banks ...................................................... 89
IV.33 Purpose-wise Outstanding Advances by Regional Rural Banks ................................ 91
IV.34 Profile of Local Area Banks ..................................................................................... 91
IV.35 Financial Performance of Local Area Banks ............................................................ 91
IV.36 Consolidated Balance Sheet of Small Finance Banks .............................................. 92
IV.37 Financial Performance of Small Finance Banks ....................................................... 92
IV.38 Consolidated Balance Sheet of Payments Banks ...................................................... 93
IV.39 Financial Performance of Payments Banks .............................................................. 93
V.1 Tier-wise Distribution of Urban Co-operative Banks ............................................... 98
V.2 Balance Sheet of Urban Co-operative Banks ........................................................... 98
V.3 Investments by Urban Co-operative Banks .............................................................. 100
V.4 Distribution of UCBs by Size of Deposits, Advances and Assets .............................. 101
V.5 Financial Performance of Scheduled and Non-scheduled Urban Co-operative Banks 101
V.6 Select Profitability Indicators of UCBs ..................................................................... 102
V.7 CRAR-wise Distribution of UCBs ............................................................................. 102
V.8 Component-wise Capital Adequacy of UCBs ............................................................ 103
V.9 Non-Performing Assets of UCBs .............................................................................. 104
V.10 Composition of Credit to Priority Sectors by UCBs ................................................. 105
V.11 Share in Credit Flow to Agriculture ......................................................................... 106
V.12 A Profile of Rural Co-operatives .............................................................................. 106
V.13 Liabilities and Assets of State Co-operative Banks .................................................. 108
V.14 Select Balance Sheet Indicators of Scheduled State Co-operative Banks ................. 109
V.15 Financial Performance of State Co-operative Banks ................................................ 109
V.16 Soundness Indicators of State Co-operative Banks ................................................. 110
V.17 Liabilities and Assets of District Central Co-operative Banks .................................. 111
V.18 Financial Performance of District Central Co-operative Banks ................................ 111
V.19 Soundness Indicators of District Central Co-operative Banks ................................. 112
viiiSr. No. Particulars Page No.
VI.1 Classification of NBFCs by Activity under the Scale-Based Regulatory Framework .. 119
VI.2 Composition of NBFCs ........................................................................................... 120
VI.3 Ownership Pattern of NBFCs ................................................................................... 121
VI.4 Abridged Balance Sheet of NBFCs ........................................................................... 122
VI.5 Major Components of Liabilities and Assets of NBFCs by Classification .................. 123
VI.6 Sectoral Credit Deployment by NBFCs .................................................................... 124
VI.7 Sources of Borrowings of NBFCs ............................................................................ 127
VI.8 Foreign Liabilities of NBFCs .................................................................................... 130
VI.9 Financial Parameters of the NBFC Sector ................................................................ 131
VI.10 Ownership Pattern of HFCs ..................................................................................... 134
VI.11 Consolidated Balance Sheet of HFCs ...................................................................... 135
VI.12 Financial Parameters of HFCs ................................................................................. 137
VI.13 Financial Assistance Sanctioned and Disbursed by AIFIs ........................................ 138
VI.14 AIFIs’ Balance Sheet ............................................................................................... 139
VI.15 Resources Mobilised by AIFIs in 2024-25................................................................ 139
VI.16 Resources Raised by AIFIs from the Money Market ................................................ 139
VI.17 AIFIs’ Sources and Deployment of Funds ............................................................... 140
VI.18 Financial Performance of AIFIs ................................................................................ 141
VI.19 AIFIs’ Select Financial Parameters ........................................................................... 141
VI.20 Performance of PDs in the Primary Market ............................................................. 142
VI.21 Performance of SPDs in the Secondary Market for Central Government Dated 143
Securities
VI.22 Sources and Applications of SPDs’ Funds ............................................................... 143
VI.23 Financial Performance of SPDs ............................................................................... 144
ixList of Charts
Sr. No. Particulars Page No.
II.1 Growth and Inflation ................................................................................................ 12
II.2 Monetary Policy Rates .............................................................................................. 13
II.3 Current Account Balance and General Government Debt ......................................... 14
II.4 Bank Credit to Private Non-Financial Sector ............................................................ 20
II.5 Provision Coverage Ratio .......................................................................................... 21
II.6 Return on Assets ...................................................................................................... 22
II.7 Leverage Ratio .......................................................................................................... 23
II.8 Market-based Indicators of Banks’ Health ................................................................ 24
II.9 Distribution of the Top 100 Global Banks by Tier 1 Capital .................................... 24
II.10 Asset Quality of the Top 100 Global Banks ............................................................. 25
II.11 Soundness of the Top 100 Global Banks ................................................................. 26
IV.1 Select Aggregates of SCBs ........................................................................................ 48
IV.2 Bank Group-wise Balance Sheet Composition .......................................................... 49
IV.3 Bank Deposit Growth and Monetary Transmission to Banks’ Deposit Rates ............ 49
IV.4 Bank Group-wise Credit Growth .............................................................................. 50
IV.5 Monetary Transmission to Banks’ Lending Rates ..................................................... 50
IV.6 Investments of Scheduled Commercial Banks .......................................................... 51
IV.7 Gap in Credit-Deposit Growth .................................................................................. 52
IV.8 Maturity Bucket-wise Assets and Liabilities Gap ...................................................... 52
IV.9 International Assets and Liabilities of Banks ............................................................ 53
IV.10 Consolidated International Claims of Indian Banks ................................................. 54
IV.11 Off-Balance Sheet Liabilities of Banks ...................................................................... 54
IV.12 Profitability Ratios .................................................................................................... 55
IV.13 Net Interest Income and Net Interest Margin ............................................................ 56
IV.14 Provision Coverage Ratio .......................................................................................... 56
IV.15 Bank Group-wise CRAR and CET1 Ratio ................................................................. 58
IV.16 Reduction in Gross Non-Performing Assets .............................................................. 60
IV.17 Overall Stress vis-à-vis Stress in Large Borrowal Accounts ..................................... 61
IV.18 Restructured Standard Advances (RSA) Ratio .......................................................... 62
IV.19 Stressed Asset Sale to ARCs ..................................................................................... 63
IV.20 Bank Group-wise Frauds ......................................................................................... 65
xSr. No. Particulars Page No.
IV.21 Area of Operation-wise Frauds ................................................................................. 66
IV.22 Flow of Financial Resources to the Commercial Sector in India ............................... 68
IV.23 Sectoral Gross Non-Performing Assets Ratio ............................................................ 68
IV.24 Gross Non-Performing Assets Ratio in Various Sub-Sectors ..................................... 69
IV.25 Trading Volume of Priority Sector Lending Certificates ........................................... 71
IV.26 Buyers and Sellers in Priority Sector Lending Certificates Market............................ 71
IV.27 Banks’ Exposure to Sensitive Sectors ....................................................................... 73
IV.28 Share of Unsecured Advances of Banks ................................................................... 74
IV.29 Ownership Pattern of Banks ..................................................................................... 74
IV.30 Components of Total Remuneration of MDs and CEOs ............................................ 76
IV.31 Overseas Operations of Indian Banks ....................................................................... 76
IV.32 Transaction Volume and Average Value of Retail Digital Payments ............................ 77
IV.33 Digital Payments Index ............................................................................................. 78
IV.34 Distribution of Complaints Received at ORBIOs ...................................................... 81
IV.35 Entity Type-wise Break-up of Major Complaint Categories: 2024-25 ........................ 82
IV.36 Progress of Financial Inclusion in Select Countries .................................................. 84
IV.37 RBI – Financial Inclusion Index ................................................................................ 85
IV.38 Progress under PMJDY ............................................................................................ 85
IV.39 Population Group-wise Distribution of Newly Opened Bank Branches of SCBs ........ 86
IV.40 Regional Penetration of Banks .................................................................................. 87
IV.41 Regional Distribution of Bank Loans Disbursed to Self Help Groups ....................... 87
IV.42 Asset Quality of Regional Rural Banks ..................................................................... 90
IV.43 Capital to Risk-weighted Assets Ratio (CRAR) of Regional Rural Banks ................... 90
V.1 Structure of Credit Co-operatives ............................................................................. 96
V.2 Distribution of Credit Co-operatives by Asset Size ................................................... 96
V.3 Number of Urban Co-operative Banks...................................................................... 97
V.4 Consolidation Drive in Urban Co-operative Banks ................................................... 97
V.5 Assets Growth .......................................................................................................... 99
V.6 Deposits and Advances ............................................................................................ 99
V.7 Credit-Deposit Ratio of UCBs ................................................................................... 99
V.8 Investments Growth ................................................................................................. 100
xiSr. No. Particulars Page No.
V.9 Composition of Investments of UCBs ....................................................................... 100
V.10 Profitability Indicators .............................................................................................. 102
V.11 Capital to Risk-weighted Assets Ratio ....................................................................... 103
V.12 Provisioning and Asset Quality of UCBs ................................................................... 104
V.13 Stress in Large Borrowal Accounts .......................................................................... 104
V.14 Priority Sector Lending - Target and Achievement .................................................... 105
V.15 Share of Rural Credit Co-operatives in Total Assets of the Co-operative Sector ........ 107
V.16 Long-term vis-à-vis Short-term RCCs....................................................................... 107
V.17 Regional Distribution of State Co-operative Banks’ Profits ....................................... 110
V.18 Capital Adequacy of State Co-operative Banks ......................................................... 110
V.19 GNPA Ratio: StCBs vis-à-vis DCCBs ........................................................................ 112
V.20 Capital Adequacy of District Central Co-operative Banks ......................................... 113
V.21 Composition of Liabilities and Assets of Long-term Rural Credit Co-operatives ....... 114
VI.1 Structure of NBFIs under the Reserve Bank’s Regulation ......................................... 118
VI.2 NBFCs’ Credit vis-à-vis SCBs’ Credit and GDP ........................................................ 120
VI.3 Registrations and Cancellations of Certificates of Registration of NBFCs .................. 121
VI.4 Nature of NBFCs’ Loans and Advances ..................................................................... 122
VI.5 Maturity Profiles of Receivables and Payables of NBFCs ........................................... 123
VI.6 Distribution of NBFCs’ Credit .................................................................................. 124
VI.7 Credit to MSME Sector ............................................................................................ 125
VI.8 Select Retail Loans by NBFCs vis--à-vis Banks ........................................................ 125
VI.9 Micro-credit Outstanding across Regulated Entities ................................................. 126
VI.10 Major Sources of Borrowings by NBFCs ................................................................... 127
VI.11 Banks’ Exposure to NBFCs ...................................................................................... 128
VI.12 Nature of NBFCs’ Borrowings ................................................................................... 128
VI.13 Public Deposits with NBFC-D ................................................................................... 129
VI.14 Loan Sales and Securitisation by NBFCs ................................................................. 129
VI.15 Structural Liquidity Statement of NBFCs ................................................................. 130
VI.16 Profitability Ratios of NBFCs .................................................................................... 131
VI.17 Asset Quality of NBFCs ............................................................................................ 132
VI.18 Sectoral GNPA Ratios of NBFCs ............................................................................... 133
xiiSr. No. Particulars Page No.
VI.19 Provision Coverage Ratio of NBFCs .......................................................................... 133
VI.20 CRAR of NBFCs ........................................................................................................ 134
VI.21 NBFCs’ Exposure to Sensitive Sectors ...................................................................... 134
VI.22 Credit to Housing Sector by HFCs, SCBs and NBFCs .............................................. 135
VI.23 Resources Mobilised by HFCs .................................................................................. 136
VI.24 Distribution of HFCs’ Public Deposits ...................................................................... 136
VI.25 Asset Quality of HFCs, by Layer ............................................................................... 137
VI.26 Capital Adequacy of HFCs ........................................................................................ 137
VI.27 Distribution of AIFIs, by Asset Size ......................................................................... 138
VI.28 Weighted Average Cost and Maturity of Rupee Resources Raised by AIFIs ............... 140
VI.29 Long-term Prime Lending Rate Structure of Select AIFIs ......................................... 140
VI.30 Return on Average Assets of AIFIs ............................................................................ 141
VI.31 Soundness Indicators of AIFIs ................................................................................. 142
VI.32 Average Rate of Underwriting Commission of PDs .................................................... 143
VI.33 Capital and Risk-Weighted Asset Positions of SPDs .................................................. 144
xiiiList of Appendix Tables
Sr. No. Particulars Page No.
IV.1 Indian Banking Sector at a Glance ........................................................................... 145
IV.2 International Liabilities of Banks in India – By Type of Instruments ......................... 146
IV.3 International Assets of Banks in India – By Type of Instruments .............................. 147
IV.4 Consolidated International Claims of Banks on Countries other than India ............. 148
IV.5 Consolidated International Claims of Banks: Residual Maturity and Sector ............. 149
IV.6 Off-Balance Sheet Exposure of Scheduled Commercial Banks in India .................... 150
IV.7 Frauds in Various Banking Operations Based on Date of Reporting ......................... 151
IV.8 Kisan Credit Card Scheme: State-wise Progress ....................................................... 154
IV.9 Bank Group-wise Lending to the Sensitive Sectors .................................................. 156
IV.10 Shareholding Pattern of Domestic Scheduled Commercial Banks ............................ 157
IV.11 Overseas Operations of Indian Banks ....................................................................... 159
IV.12 Branches and ATMs of Scheduled Commercial Banks ............................................. 160
IV.13 Progress of Microfinance Programmes ..................................................................... 163
IV.14 Major Financial Indicators of Regional Rural Banks – State-wise ............................. 164
IV.15 RRBs - PSL Target and Achievement – 2024-25 ....................................................... 166
V.1 Indicators of Financial Performance: Scheduled UCBs ............................................. 167
V.2 Select Financial Parameters: Scheduled UCBs ......................................................... 169
V.3 Salient Indicators of Financial Health of State Co-operative Banks .......................... 170
V.4 Salient Indicators of Financial Health of District Central Co-operative Banks .......... 171
V.5 Details of Members and Borrowers of Primary Agricultural Credit Societies ............ 172
V.6 Primary Agricultural Credit Societies ....................................................................... 173
V.7 Select Indicators of Primary Agricultural Credit Societies – State-wise ..................... 174
V.8 Liabilities and Assets of State Co-operative Agriculture and Rural Development 176
Banks .......................................................................................................................
V.9 Financial Performance of State Co-operative Agriculture and Rural Development 177
Banks .......................................................................................................................
V.10 Asset Quality of State Co-operative Agriculture and Rural Development Banks ........ 178
V.11 Financial Indicators of State Co-operative Agriculture and Rural Development Banks 179
– State-wise ..............................................................................................................
xivSr. No. Particulars Page No.
V.12 Liabilities and Assets of Primary Co-operative Agriculture and Rural Development 180
Banks .......................................................................................................................
V.13 Financial Performance of Primary Co-operative Agriculture and Rural Development 181
Banks .......................................................................................................................
V.14 Asset Quality of Primary Co-operative Agriculture and Rural Development Banks ... 182
V.15 Major Financial Indicators of Primary Co-operative Agriculture and Rural 183
Development Banks .................................................................................................
VI.1 Consolidated Balance Sheet of NBFCs ...................................................................... 184
VI.2 Consolidated Balance Sheet of NBFC-UL.................................................................. 185
VI.3 Consolidated Balance Sheet of NBFC-ML ................................................................. 186
VI.4 Consolidated Balance Sheet of NBFC-D.................................................................... 187
VI.5 Credit to Various Sectors by NBFCs ......................................................................... 188
VI.6 Financial Performance of NBFC-UL .......................................................................... 189
VI.7 Financial Performance of NBFC-ML ......................................................................... 190
VI.8 Financial Assistance Sanctioned and Disbursed by Financial Institutions ................ 191
VI.9 Financial Performance of Standalone Primary Dealers ............................................. 195
VI.10 Select Financial Indicators of Primary Dealers ......................................................... 196
xvList of Select Abbreviations
AA Account Aggregator CD Credit-Deposit
AAC Advances against Commodities CDS Credit Default Swap
ACB Audit Committee of the Board CEM Current Exposure Method
AD Authorised Dealer CEOBSE Credit Equivalent of Off-balance
Sheet Exposures
AePS Aadhaar Enabled Payment System
AEs Advanced Economies CEOs Chief Executive Officers
AI Artificial Intelligence CEPCs Consumer Education and
Protection Cells
AID All-inclusive Directions
CEPD Consumer Education and
AIFIs All India Financial Institutions
Protection Department
AIFs Alternative Investment Funds
CET1 Common Equity Tier 1
AML Anti-money Laundering
CFLs Centres for Financial Literacy
ANBC Adjusted Net Bank Credit
CICs Credit Information Companies
APBS Aadhaar Payment Bridge System
CIs Credit Institutions
API Application Programming Interface
CISBI Central Information System for
ARCs Asset Reconstruction Companies
Banking Infrastructure
ATMs Automated Teller Machines
CLAs Co-lending Arrangements
ATOs AePS Touchpoint Operators
CMBs Cash Management Bills
BCBS Basel Committee on Banking
CME Capital Market Exposure
Supervision
CMS Complaint Management System
BC-ICT Business Correspondents -
Information and Communication CoR Certificate of Registration
Technology
CP Commercial Paper
BCs Business Correspondents
CRAR Capital to Risk-weighted Assets
BHIM Bharat Interface for Money Ratio
BIS Bank for International Settlement CRE Commercial Real Estate
bps basis points CRILC Central Repository of Information
on Large Credits
BSBDAs Basic Savings Bank Deposit
Accounts CRM Credit Risk Mitigation
BSE Bombay Stock Exchange CRPC Centralised Receipt and Processing
CAB Current Account Balance Centre
CASA Current Account and Savings CRR Cash Reserve Ratio
Account CTS Cheque Truncation System
CBDC Central Bank Digital Currency CVA Credit Valuation Adjustment
CBS Core Banking Solution
DBIE Database on Indian Economy
CCB Capital Conservation Buffer
DBT Direct Benefit Transfers
CCR Counterparty Credit Risk
DCCBs District Central Co-operative
CD Certificates of Deposit Banks
xviDDs Demand Drafts FSWM Financially Sound and Well
Managed
DICGC Deposit Insurance and Credit
Guarantee Corporation GCCs General Credit Cards
DIP Digital Intelligence Platform GDP Gross Domestic Product
DoT Department of Telecommunications GENIUS Act Guiding and Establishing National
Innovation for U.S. Stablecoins Act
DPI Digital Public Infrastructure
GFC Global Financial Crisis
DPIP Digital Payments Intelligence
Platform GML Gold Metal Loans
DRTs Debt Recovery Tribunals GNPA Gross Non-performing Asset
EBT Electronic Benefit Transfer G-sec Government Securities
ECB European Central Bank HFCs Housing Finance Companies
ECBA Eligibility Criteria for Business HHI Herfindahl Hirshman Index
Authorisation HQLA High-quality Liquid Assets
ECBs External Commercial Borrowings IAC Independent Advisory Committee
ECGC Export Credit Guarantee IBBI Insolvency and Bankruptcy Board
Corporation of India of India
ECL Expected Credit Loss IBC Insolvency and Bankruptcy Code
ECS Electronic Clearance Service ICT Information and Communication
Technology
EMDEs Emerging Market and Developing
Economies IDR Insured Deposits Ratio
EMEs Emerging Market Economies IFR Investment Fluctuation Reserve
EMI Equated Monthly Instalments IFSC Indian Financial System Code
ERP Enterprise Resource Planning IIS Investment in Securities
ETF Exchange Traded Funds IMF International Monetary Fund
EU European Union IMPS Immediate Payment Service
EXIM Bank Export-Import Bank of India INR Indian Rupees
FBs Foreign Banks IO Internal Ombudsman
FI Financial Inclusion IS Information Systems
IT Information Technology
FIPs Financial Inclusion Plans
ITE Intra-group Transactions and
FIRE Format for Incident Reporting
Exposures
Exchange
IWG Internal Working Group
FIs Financial Institutions
JLGs Joint Liability Groups
FPIs Foreign Portfolio Investors
KCCs Kisan Credit Cards
FREE-AI Framework for Responsible and
Ethical Enablement of Artificial KYC Know Your Customer
Intelligence LABs Local Area Banks
FSB Financial Stability Board LAF Liquidity Adjustment Facility
xviiLCR Liquidity Coverage Ratio NBFC-MFIs Non-Banking Financial Companies
- Microfinance Institutions
LEF Large Exposures Framework
NBFC-MGC Non-Banking Financial Company -
LSPs Lending Service Providers
Mortgage Guarantee Company
LTV Loan-to-Value
NBFC-ML Non-Banking Financial Company -
MAS Monetary Authority of Singapore Middle Layer
MDs Managing Directors NBFC-NOFHC Non-Banking Financial Company
- Non-Operative Financial Holding
MFIN Microfinance Industry Network
Company
MFIs Microfinance Institutions
NBFCs Non-Banking Financial Companies
MFs Mutual Funds
NBFCs-D Deposit-taking NBFCs
MiCA Markets in Crypto-Assets
NBFCs-P2P Non-Banking Financial Companies
ML Machine Learning
- Peer to Peer
MPC Monetary Policy Committee NBFC-UL Non-Banking Financial Company-
MPFI Monitoring Progress of Financial Upper Layer
Inclusion NBFIs Non-bank Financial Intermediaries
MSEs Micro and Small Enterprises NBFIs Non-Banking Financial Institutions
MSF Marginal Standing Facility NCFE National Centre for Financial
Education
MSME Micro, Small and Medium
Enterprises NCLTs National Company Law Tribunals
NABARD National Bank for Agriculture and NDTL Net Demand and Time Liabilities
Rural Development
NDS-OM Negotiated Dealing System-Order
NaBFID National Bank for Financing Matching
Infrastructure and Development NEFT National Electronic Funds Transfer
NACH National Automated Clearing House NETC National Electronic Toll Collection
NAFSCOB National Federation of State NFB Non-fund based
Co-operative Banks Ltd.
NHB National Housing Bank
NBFC-AA Non-Banking Financial Company -
NII Net Interest Income
Account Aggregator
NIM Net Interest Margin
NBFC-BL Non-Banking Financial Company -
NNPA Net Non-Performing Asset
Base Layer
NPA Non-Performing Asset
NBFC-CIC Non-Banking Financial Company -
Core Investment Company NPCI National Payments Corporation of
India
NBFC-ICC Non-Banking Financial Company -
Investment and Credit Company NPL Non-Performing Loans
NRC Nomination and Remuneration
NBFC-IDF Non-Banking Financial Company -
Committee
Infrastructure Debt Finance
NRO Non-resident Ordinary
NBFC-IFC Non-Banking Financial Company -
Infrastructure Finance Company NSE National Stock Exchange
xviiiNSFI National Strategy for Financial RB-CRIS Reserve Bank – Climate Risk
Inclusion Information System
NSFR Net Stable Funding Ratio RBI Reserve Bank of India
OD Overdraft RBI-DPI Reserve Bank of India-Digital
Payments Index
OECD Organisation for Economic
Co-operation and Development RB-IOS Reserve Bank - Integrated
Ombudsman Scheme
OMO Open Market Operation
RCB Rural Co-operative Banks
ORBIOs Offices of the Reserve Bank of India
Ombudsman RCCs Rural Credit Co-operatives
OTP One-time Password REE Real Estate Exposure
OTS One-time Settlement REs Regulated Entities
P2M Peer-to-Merchant RMCB Risk Management Committee of
PA Payment Aggregator Board
PACS Primary Agriculture Credit RoA Return on Assets
Societies RoE Return on Equity
PBs Payment Banks
RRBs Regional Rural Banks
PCARDBs Primary Co-operative Agriculture
RSA Restructured Standard Advances
and Rural Development Banks
RSETIs Rural Self Employment Training
PCE Partial Credit Enhancement
Institutes
PCR Provision Coverage Ratio
RTGS Real Time Gross Settlement
PDs Primary Dealers
SA-CCR Standardised Approach for
PFE Potential Future Exposure Counterparty Credit Risk
PFIs Public Financial Institutions SARFAESI Securitisation and Reconstruction
of Financial Assets and
PLR Prime Lending Rate
Enforcement of Security Interest
PMJDY Pradhan Mantri Jan-Dhan Yojana
SCARDBs State Co-operative Agriculture and
PPI Prepaid Payment Instrument
Rural Development Banks
PRAVAAH Platform for Regulatory
SCB Scheduled Commercial Bank
Application, Validation and
SDF Standing Deposit Facility
AutHorisation
PSBs Public Sector Banks SEBI Securities and Exchange Board of
India
PSL Priority Sector Lending
SFBs Small Finance Banks
PSLCs Priority Sector Lending Certificates
SHG Self Help Group
PVBs Private Sector Banks
SHG-BLP Self-Help Group - Bank Linkage
PwD Persons with Disability
Programme
QA Qualifying Asset
SIBC Sector-wise and Industry-wise
QR Quick Response Bank Credit
xixSIDBI Small Industries Development TReDS Trade Receivables Discounting
Bank of India System
SLR Statutory Liquidity Ratio TREP Triparty Repo
SMA Special Mention Accounts UAE United Arab Emirates
SMF Small and Marginal Farmers UCBs Urban Co-operative Banks
SMS Short Message Service ULI Unified Lending Interface
SOP Standard Operating Procedure UMI Unified Markets Interface
SPDs Standalone Primary Dealers UPI Unified Payments Interface
SRO Self-regulatory Organisation UTs Union Territories
SSE Shared Service Entity V-CIP Video Customer Identification
Process
SSE Sensitive Sector Exposure
VRR Variable Rate Repo
SSPL Sahakar Sarathi Private Limited
VRRR Variable Rate Reverse Repo
StCBs State Co-operative Banks
WACR Weighted Average Call Rate
T-bill Treasury Bill
WEO World Economic Outlook
TRAI Telecom Regulatory Authority of
India Y-o-y Year-on-year
xxI
PERSPECTIVES
The Indian banking and non-banking financial system remained robust and supportive of growth and
financial inclusion. Regulations and macroprudential policies are being aligned to further strengthen
resilience and competitiveness of the banking sector, while promoting ease of doing business. Going forward,
balancing innovation with stability, supported by prudent regulation and supervision will be crucial for
ensuring a resilient financial system.
Introduction year low.3 Monetary policy continued with the
neutral stance, with a reduction in the policy
I.1 The global economy displayed significant
rate by 25 basis points (bps) on December 5,
resilience to shocks that were largely not
2025, on top of the 100 bps cut in the first half
anticipated in early 2025, even though the
of 2025. The Indian banking sector remained
outlook continues to be clouded amid heightened
resilient, underpinned by a strong balance sheet,
uncertainty.1 Inflation has been hovering above
sustained profitability, steadily improving asset
target in many major advanced economies,
quality, and high capital buffers. Non-banking
although global inflation outlook remains benign.
financial companies (NBFCs) also recorded
Central banks are exercising caution while
robust performance, supported by double-
navigating through the shifting growth-inflation
digit credit growth, improved asset quality
dynamics. Financial markets remain volatile,
and comfortable capital buffers. On the back
while risky assets valuation appears stretched
amid slowing global growth.2 Nonetheless, the of strong macroeconomic fundamentals and
global banking system remained resilient, backed soundness of the financial system, the Reserve
by strong capital buffers and profitability. Policy Bank undertook various measures to strengthen
makers, however, remain attentive to concerns the resilience and competitiveness of the banking
related to interconnectedness in the financial sector, promote ease of doing business, and
system in view of the growing role of non- improve credit flow to meet the financing needs of
banking financial institutions and their complex a growing economy. Efforts to promote financial
linkages with banks in an environment of global inclusion, responsible financial innovation, and
uncertainty. customer protection continued.
I.2 In the midst of a rapidly changing global I.3 Against this backdrop, this chapter outlines
landscape, the Indian economy recorded robust the key challenges and emerging opportunities for
growth, and the near-term outlook remains the banking and non-banking financial system,
positive, while inflation softened to a multi- together with the policy priorities of the Reserve
1 Reserve Bank of India (2025). Governor’s Statement, October 1.
2 International Monetary Fund (2025). Global Financial Stability Report, October.
3 Policy Frameworks for Economic Resilience: The Case of Emerging Markets and India, Address by Dr. Poonam Gupta, October 29,
2025, at the Business Standard BFSI Insight Summit, Mumbai.
1Report on Trend and Progress of Banking in India 2024-25
Bank. Section 2 presents an outlook on the review each regulation in a comprehensive and
evolving regulation and supervision, followed objective manner, channelising industry feedback
by developments in payment and settlement into the periodic review. The Reserve Bank has
ecosystem in Section 3. Section 4 examines undertaken development of comprehensive
the opportunities and risks arising out of supervisory manuals for its senior supervisory
rapid adoption of emerging technologies. The managers (SSMs).
subsequent sections address key thematic areas
Guidelines on Assurance Functions
– financial inclusion, consumer protection,
and climate-finance – which are of increasing I.5 The Reserve Bank is in the process of
relevance to inclusive growth and systemic consolidating and harmonising the guidelines
resilience. The chapter concludes with an overall on Assurance Functions (compliance, risk
assessment in Section 8. management and internal audit) for commercial
banks, co-operative banks and NBFCs.
2. Regulation and Supervision
Counterparty Credit Risk
I.4 The Reserve Bank’s regulatory endeavour
has been to balance efficiency and stability, while I.6 In India, counterparty credit risk capital
aligning regulations with international standards charge is currently computed using the current
and adapting to national priorities. The exposure method (CEM). However, the CEM does
regulatory framework is based on five principles not adequately differentiate between margined
– proportionality, consultation, evidence-driven, and unmargined transactions and does not
principle-based and agility.4 The evolution of the sufficiently reflect the risk-mitigating impact of
financial system and its regulatory framework, collaterals and netting. The existing guidelines are
however, had resulted in proliferation of currently being reviewed for replacing with the
numerous circulars and directions over the Standardised Approach for Counterparty Credit
years. To enhance clarity and applicability of Risk (SA-CCR) under the Basel III framework,
regulatory instructions, reduce compliance costs, which is a more risk-sensitive method.
and thereby improve convenience and ease of
Credit Valuation Adjustment Framework
doing business, the Reserve Bank consolidated
more than 9,000 existing circulars/ guidelines I.7 Credit valuation adjustment (CVA) risk
pertaining to the Department of Regulation into arises from mark-to-market losses on derivatives
2445 function-wise Master Directions, specific and securities financing transactions due to
to 11 types of regulated entities (REs). Work the deterioration of a counterparty’s credit-
is now being undertaken to consolidate the worthiness. The current guidelines on CVA,
circulars and directions of other departments. issued in 2012, are being reviewed to reflect the
Further, in order to make the regulatory process improvements in the CVA framework, issued
consultative, a Regulatory Review Cell has subsequently by the Basel Committee on Banking
been operationalised within the Reserve Bank, Supervision (BCBS) as revisions to the Basel III
effective from October 1, 2025. The Cell will framework. The revised CVA framework offers
4 Inaugural Address by Shri Sanjay Malhotra, August 25, 2025, at the FIBAC 2025 Conference, Mumbai.
5 Including seven new Master Directions on digital banking channel authorisation.
2PERSPECTIVES
granularity on the eligibility of CVA hedges and Capital Charge for Credit Risks
extent of their recognition, and introduces greater
I.10 The Reserve Bank issued draft directions
sensitivity on the supervisory risk weights for
on the capital charge for credit risk - standardised
counterparties, based on the sector and credit
approach under the Basel III standards on
quality.
October 7, 2025. The major changes proposed,
Capital Market Exposure vis-à-vis extant norms under Basel II standards,
include: (i) granular risk weight treatment for
I.8 Capital market exposures (CME) of the
exposures to corporates, micro, small and
regulated entities, given the relatively higher
medium enterprises (MSMEs) and real estate;
risk involved in such exposures, have been
(ii) inclusion of ‘transactors’6 under regulatory
subjected to various prudential regulations.
retail category; (iii) revision in the credit conversion
The Reserve Bank issued Draft Directions on
factors for reckoning the exposure for off-balance
Capital Market Exposures to align the guidelines
sheet exposures; and (iv) suitable adjustments to
with evolving market practices and provide a
the risk weights applied to externally rated loans,
more enabling framework for bank financing of
on the basis of rating grade-wise default history
CME, including bank finance for acquisitions by
for each credit rating agency, and due diligence
Indian corporates. The proposed measures are
by banks. The revisions will help in improving
expected to promote credit growth while ensuring
the resilience of the banking sector and align the
prudential safeguards and improve the domestic
regulatory framework with the international best
banks’ competitiveness.
practices.
Expected Credit Loss
Lending to Related Parties
I.9 The current incurred loss approach to
I.11 The Reserve Bank issued a principle-
provisioning results in delayed stress recognition,
based related-party lending draft framework
with potential amplification of procyclicality. In
on October 3, 2025, to rationalise the existing
order to address these concerns, the Reserve Bank
provisions. The major changes proposed in the
proposed migration of scheduled commercial
draft framework include introduction of scale-
banks (SCBs) (excluding small finance banks,
based materiality thresholds beyond which
payments banks and regional rural banks) and
lending to related parties of an RE shall need
all-India financial institutions (AIFIs) to expected
approval of the Board or its Committee and
credit loss (ECL) based framework from April 1,
suitable supervisory reporting and disclosure
2027, with a five-year transitional arrangement
requirements on transaction with related parties.
to smoothen the capital impact. This will help
Review of Investment Fluctuation Reserve
strengthen risk management practices, improve
pricing of credit, enhance transparency and I.12 Banks are required to maintain an
comparability of banks’ financial statements, investment fluctuation reserve (IFR) to provide
and foster discipline in credit origination. them an additional buffer against depreciation in
6 Transactors mean obligors in relation to facilities such as credit cards and charge cards where the balance has been repaid in full at
each scheduled repayment date for the previous 12 months.
3Report on Trend and Progress of Banking in India 2024-25
the value of investments. A comprehensive review Bank is currently in the process of issuing the
of the existing instructions on IFR is underway to final circular on this matter.
address certain operational constraints faced by
Co-operative Banks
banks in maintaining the IFR.
I.16 Urban co-operative banks (UCBs) promote
Non-Banking Financial Companies
financial inclusion, but need stronger governance,
I.13 The Reserve Bank has been undertaking professional management, timely oversight,
several measures to strengthen risk management and secure technology adoption for resilience.8
practices and governance standards, while Licensing of new UCBs has been paused since
harmonising regulation and supervision of 2004. Recognising the positive developments
NBFCs for sustainable growth and financial in the sector in the recent period, the Reserve
stability.7 Bank proposes to publish a Discussion Paper on
licensing of new UCBs.
I.14 The scale-based regulation framework
for NBFCs envisages a differential regulatory I.17 In order to further financial inclusion by
treatment to NBFCs not availing public funds expanding the bouquet of financial products
and not having customer interface. Towards available to customers of regional rural banks
this initiative, a review of the extant regulations (RRBs) and rural co-operative banks (RCBs),
is underway. Further, with a view to aligning it is proposed to harmonise the guidelines for
the risk weights for infrastructure lending by RRBs, UCBs and RCBs. In this connection,
NBFCs with the actual risk characteristics and a comprehensive draft policy is proposed to
to optimise the cost of infrastructure financing, it simplify and update the instructions on para-
has been proposed to introduce a principle-based
banking activities for these institutions.
framework. In this direction, a draft framework
Chief Risk Officer
has been issued for public consultation to
promote better risk assessment and capital I.18 Harmonised instructions on appointment
allocation. of Chief Risk Officer (CRO) in commercial banks,
co-operative banks and NBFCs is under process.
Credit or Investment Concentration Norms–
Government NBFCs Net Open Position
I.15 A draft circular issued in January 2024 I.19 Capital charge for foreign exchange risk
proposed extending the credit concentration is computed in terms of a regulated entity’s net
norms applicable to each category of NBFCs to open position in foreign exchange, including
Government-owned NBFCs and withdrawing any gold. The extant guidelines are being reviewed
existing dispensations granted to them. To ensure to ensure greater alignment with international
a smooth transition, existing breaches would be standards and consistent implementation across
permitted to run off until maturity. The Reserve various categories of REs.
7 Shared Vision, Shared Responsibility – Strengthening NBFCs, Speech by Shri Swaminathan J., March 28, 2025, at the Conference
of Non-Banking Financial Companies, Chennai.
8 Working Together, Growing Stronger: Responsible Governance for a Resilient UCB Sector, Valedictory Address by Shri Swaminathan
J., July 11, 2025, at the Seminar for Directors of Urban Co-operative Banks, CAB, Pune.
4PERSPECTIVES
Citizen and Regulatory Services Widening Access to Centralised Payment
System
I.20 The revised Citizen’s Charter of the Reserve
Bank came into effect from July 1, 2025, which I.22 The feasibility of extending direct
reaffirmed the Reserve Bank’s commitment membership to centralised payment systems,
to improving accessibility, responsiveness, viz., real time gross settlement (RTGS) and
and transparency in its service delivery. A national electronic funds transfer (NEFT),
comprehensive review of the services offered to additional categories of non-bank entities
by the Reserve Bank has been undertaken. engaged in large volume and/or high value
The Charter now contains 204 services and the payment transactions will be explored. This
timelines have been rationalised. All regulatory is expected to reduce settlement timelines,
services are available online through PRAVAAH mitigate concentration risks, and foster greater
which is a secure, centralised web-based portal competition and innovation.
for digitising the submission and processing of
Advancing Cross-Border Payment Efficiency
applications, requests and references from REs
I.23 The Reserve Bank has recently published
and individuals.
draft guidelines to enhance efficiency of cross-
3. Payment and Settlement Systems border inward payments. By streamlining
Digital Payments internal workflows, standardising payment
intimation protocols, and adopting near real-
I.21 The Reserve Bank adopted a soft-touch
time reconciliation mechanisms, the guidelines
regulation approach for FinTech and payment
are expected to address the delay in cross-
ecosystem9 to encourage financial innovation
border inward payments through correspondent
while safeguarding the system from emerging
banking channel.
risks. Various measures were undertaken to
Internationalisation of Payment Systems
make the economy digitally inclusive. At end-
March 2025, 514 districts across 15 states and I.24 The Reserve Bank is actively pursuing
6 union territories (UTs) were fully digitally measures to promote and expand the global
enabled, with every eligible individual in the acceptance of Indian payment instruments, which
district having access to at least one digital include enabling QR-based unified payments
payment mode.10 Digital payments awareness interface (UPI) acceptance for cross-border
week is being conducted each year in March. merchant (P2M) payments; interlinking UPI
For promoting ease of access to digital with fast payment systems in other countries for
payments for persons with disability (PwD), all facilitating cross border remittance; and offering
system participants have been advised to review deployment of UPI and RuPay technology stack
their payment systems/devices in line with to other countries for development of similar
accessibility standards issued by the Government fast payment system and domestic card scheme,
of India. respectively.
9 Address by Shri Sanjay Malhotra, March 10, 2025, at the Inauguration of Digital Payments Awareness Week 2025, RBI, Mumbai.
10 Moving the Boundaries of Financial Inclusion - A Regulatory Perspective, Address by Shri M. Rajeshwar Rao, June 9, 2025, at the
HSBC’s event for Financial Inclusion, Mumbai.
5Report on Trend and Progress of Banking in India 2024-25
Internationalisation of Rupee11 Unified Lending Interface
I.25 The Reserve Bank proposed various I.27 Unified lending interface (ULI) ensures
measures to enhance use of Indian rupee (INR) digital access to information from diverse data
for international trade. For cross-border trade sources, positioning itself as a pivotal DPI in the
transactions, authorised dealer (AD) banks lending space. It brings together financial service
have been allowed to extend rupee loans to non- providers and multiple data providers through
residents from Bhutan, Nepal and Sri Lanka. a standardised, protocol-driven architecture and
Further, the Reserve Bank proposed to establish an open application programming interface (API)
transparent reference rates for currencies of framework. Operating on a plug-and-play model,
India’s major trading partners to facilitate INR ULI eliminates the need for complex one-to-one
based transactions. Special rupee vostro account integrations between lenders and data providers,
balances have been made eligible for investment enabling lenders to connect to the platform once
in corporate bonds and commercial papers. and access a broad array of data necessary for
efficient credit assessments and decision-making.
4. Adoption of Emerging Technologies
Through e-KCC platform of National Bank for
I.26 Technological innovations are reshaping
Agriculture and Rural Development (NABARD),
the financial services landscape. Over time, the
ULI is also expanding its reach to customers
role of technology in finance has shifted from
banking with district central co-operative banks
improving operational efficiency to automating
(DCCBs) and RRBs. As on December 12, 2025,
and centralising previously manual, fragmented
64 lenders including 41 banks and 23 NBFCs
processes and increasingly reshaping how
are onboarded to ULI. These lenders are using
financial services are delivered to customers. The
more than 136 data services through ULI for 12
digital public infrastructure (DPI) is providing
different type of loan journeys13, including, inter
foundations for rapid financial innovations12
alia, authentication and verification services,
and playing a critical role in addressing barriers
land records data from eight states, satellite
to inclusion. FinTechs are furthering financial
service, transliteration, property search services,
innovations and bridging the digital divide, while
dairy insights and credit guarantee. Additional
fostering healthy competition. The Reserve Bank
data services and data sources are being
has been endeavouring to create an enabling
onboarded on the platform to enable efficient
regulatory environment for promoting innovation
credit assessment and decision making.
and ensuring financial system integrity. Through
Central Bank Digital Currency
the HaRBInger initiative, the Reserve Bank
invites people and entities from domestic as well I.28 India’s central bank digital currency
as global markets to develop innovative solutions (CBDC), the Digital Rupee (e₹) is evolving as an
for the existing challenges in specified areas important instrument with unique use cases. In
through problem statements. CBDC-retail, multiple pilots under various direct
11 Reserve Bank of India (2025). Statement on Developmental and Regulatory Policies, October 1.
12 Transformational Technologies and Banking: Key Issues, Keynote Address delivered by Shri T. Rabi Sankar, November 7, 2025, at
the 12th SBI Banking & Economics Conclave - 2025, Mumbai.
13 Kisan Credit Card, digital cattle, MSME (unsecured), housing, personal, tractor, micro business, vehicle, digital gold, E-Mudra,
pension and dairy maintenance loans.
6PERSPECTIVES
benefit transfer schemes of state governments credit histories.14 Through continuous learning,
were tested. In respect of individuals, user level AI can also improve real-time fraud and mule-
programmability was introduced with select account detection, while enabling hyper-
banks, which would empower individuals to personalised loan solutions tailored to borrower
transfer programmed digital currency to other needs and financial flows. Automation of credit
individuals. With regard to the cross-border appraisal and know your customer (KYC) through
segment, the Reserve Bank engaged bilaterally AI reduces cost, accelerates disbursement, and
with the UAE and Singapore, and also recently enables small loans in remote regions. Similarly,
joined multilateral projects led by the BIS integrating AI in the grievance redressal lifecycle –
Innovation Hub. from complaint lodging to closure – can result in
a seamless, efficient, and data-driven processes,
FinTech Sector
thus reducing the turnaround times.
I.29 The Reserve Bank has been proactively
I.31 AI, however, carries incremental risks
engaging with the FinTech sector, with nearly 500
including poor model explainability, data/concept
interactions during 2024-25. In addition, there
drift, automation complacency, and skill gaps in
are also regular interactions with innovators
AI oversight, which can lead to systemic errors
and entrepreneurs through structured platforms
or errors in credit assessments. REs need to be
such as Finteract and Finquiry. During 2024-
cognizant of the concomitant challenges such
25, 12 editions of Finteract and 10 editions of
as data privacy, algorithmic bias and ethical
Finquiry were conducted with a total attendance
considerations.15
of about 1,100 participants. The Reserve Bank
has also established a FinTech Repository to I.32 Recognising these challenges, the Reserve
collect key information on activities, products Bank aims to foster an ecosystem wherein
and technology stack, enabling more informed financial innovation flourishes without
and evidence-based policymaking for the compromising systemic stability. In view of
FinTech sector. Acknowledging the diversity in the growing use of models by REs across
the FinTech sector, the Reserve Bank granted credit, operational, and other functional areas,
the Reserve Bank has proposed to issue a
recognition to a self regulatory organisation
comprehensive Model Risk Management
(SRO) in the sector in 2024 to enable FinTechs to
Guidelines applicable to all models. To encourage
operate with baseline governance standards and
the responsible and ethical adoption of AI in
industry best practices.
the financial sector, the FREE-AI (Framework
Artificial Intelligence
for Responsible and Ethical Enablement of
I.30 In the financial sector, artificial intelligence Artificial Intelligence) committee was constituted
(AI) can enhance credit risk assessment and by the Reserve Bank in December 2024, which
scoring using alternative data, enabling lenders to submitted its Report in August 2025. Following
provide credit to customers who lack traditional the examination of the recommendations, the
14 Balancing Innovation and Prudence - AI’s Role in India’s Financial Future, Keynote Address by Shri M. Rajeshwar Rao, September
16, 2025, at 3rd edition of the CNBC-TV18 Banking Transformation Summit, Mumbai.
15 Transforming Grievance Redress: The AI Advantage, Inaugural Address by Shri Sanjay Malhotra, March 17, 2025, at the Annual
Conference of the RBI Ombudsmen, Mumbai.
7Report on Trend and Progress of Banking in India 2024-25
Reserve Bank intends to formulate/update its to October 2025. The Reserve Bank was also
policy guidance as necessary. associated with a campaign for settlement of
unclaimed deposits of account holders during
5. Financial Inclusion
the year.
I.33 In pursuit of the goal of sustainable
UDGAM Portal
financial inclusion, the Reserve Bank has
undertaken various initiatives, such as framing I.37 The UDGAM portal facilitates the search
the National Strategy for Financial Inclusion, of unclaimed deposits/accounts across multiple
rolling out Centres for Financial Literacy project, banks at one place; and provides information
and implementing the Expanding and Deepening on claim/settlement process of each bank. The
of Digital Payments Ecosytem programme. Reserve Bank is working with the Ministry of
Reflecting policy efforts across the financial Finance to develop a unified portal to enable
system, the Reserve Bank’s financial inclusion savers and retail investors to claim all unclaimed
index improved to 67.0 in March 2025 from assets across all asset classes such as bank
43.4 in March 2017. A review of the Index is deposits, pension fund, shares, and dividends.
being undertaken to improve its coverage and The integrated portal would make it easier for
parameters. citizens to locate their unclaimed funds.
National Strategy for Financial Inclusion 2025-30 6. Consumer Protection
I.34 The National Strategy for Financial I.38 Consumer protection is fundamental to
Inclusion (NSFI): 2025-30 was released on strengthening trust and confidence in the financial
December 1, 2025. The vision of NSFI: 2025- system. This, in turn, rests on fair treatment of
30 is to strengthen the financial inclusion customers and an efficient grievance redressal
ecosystem with the synergised efforts of mechanism. While substantial progress has been
stakeholders towards well-being of people by made in improving consumer services, rising
ensuring delivery of equitable, responsible, grievances continue to be a matter of concern. In
suitable, and affordable financial services duly this regard, consumer education and protection
supported by livelihood enablers, effective remains a policy priority of the Reserve Bank.
financial literacy, digital public infrastructure,
Internal Ombudsman
and robust customer protection.
I.39 With a view to enhancing the effectiveness of
I.35 As part of financial inclusion initiatives,
the Internal Ombudsman (IO) mechanism in REs,
the Reserve Bank is in the process of reviewing
the Reserve Bank issued Draft Master Direction
the Business Correspondent (BC) model and the
in October 2025. It proposes a two-tier grievance
Kisan Credit Card (KCC) scheme. The Reserve
redress structure within REs before escalating
Bank is also reviewing the Lead Bank Scheme
complaints to the IO, and empowerment of the
(LBS) and working on a unified portal for data
IOs with compensation powers and access to
reporting under LBS.
the complainants. These measures will help in
I.36 The Reserve Bank was actively involved timely and meaningful resolution of customer
in a country-wide campaign for re-KYC of bank grievances, improve service standards and
accounts, at Gram Panchayat level from July consumer confidence.
8PERSPECTIVES
Ombudsman Scheme cyber-enabled fraud and strengthen customer
protection. REs need to put in place robust
I.40 The Reserve Bank - Integrated Ombudsman
internal controls, ensure sufficient grievance
Scheme (RB-IOS), 2021 provides customers of
redress officers at all levels, and enhance digital
REs with a speedy, cost-free and expeditious
financial literacy to address digital frauds.
alternate grievance redress mechanism. This
Scheme was reviewed comprehensively, and a I.44 Recent initiatives by the Reserve Bank
Draft Scheme was released in October 2025, include development of MuleHunter.aiTM to
based on operational experience, stakeholder facilitate system-wide learning to identify and
feedback and global best practices. Further, flag potential mule accounts, which has been
the scope of the Scheme was extended to state implemented in 23 banks as on December 17,
co-operative banks and central co-operative 2025; and a digital payments intelligence platform
banks, previously under NABARD, effective (DPIP) to leverage AI to flag risky transactions
November 1, 2025. By allowing access to and share intelligence for fraud detection and
customers of rural co-operative banks, this prevention.
Scheme will strengthen grievance redressal and
Limiting Liability of Customers in Unauthorised
boost customer confidence.
Electronic Banking Transactions
I.41 As part of customer centric measure, the
I.45 Instructions related to limited liability of
Reserve Bank is conducting a special two-month
customers in unauthorised electronic banking
campaign starting from January 1, 2026, with
transactions, issued in 2017, are being reviewed
an aim to resolve all grievances pending for more
in view of major shifts in the banking landscape,
than a month with the RBI Ombudsman.
including emergence of new payment channels,
Complaint Management System (CMS) 2.0
higher volumes of digital transactions, and
I.42 The Reserve Bank has undertaken evolving fraud patterns. This is expected to
development of the Complaint Management improve customer safeguards.
System (CMS) 2.0 for upgradation of the
Guidelines on Mis-selling and Recovery of
current system with improved customer user
Loans
interface.
I.46 Mis-selling of financial products and
Digital Frauds
services by REs has significant consequences for
I.43 Building on several customer protection both customers as well as the financial sector.
measures implemented so far, the Reserve Hence, it is proposed to issue comprehensive
Bank announced a principle-based framework instructions to different categories of REs on
on authentication of digital transactions, while advertising, marketing and sales of financial
exclusive internet domains and designated products/ services, including aspects related to
numbering series were introduced for REs to prevention of mis-selling. Further, it is proposed
reduce cyber security threats. The Reserve Bank to review the extant instructions on conduct
continues to work with stakeholders, including related matters associated with engagement of
the Ministry of Home Affairs, to develop and recovery agents and recovery of loans, and issue
operationalise measures to curb digital and harmonised instructions in this regard.
9Report on Trend and Progress of Banking in India 2024-25
Deposit Insurance and sustainable finance under the regulatory
sandbox as an initiative to foster sustainable
I.47 Deposit insurance is a key element of the
innovation in this field. The REs are also required
financial safety net. To reduce moral hazard
to invest in structured upskilling and focus on
problem and to align with global best practices,
board-level orientation and ‘tone from the top’
the Reserve Bank, in December 2025, approved
leadership to integrate physical and transition
the framework to move away from the existing
risks, and sustainable finance into core strategy.
flat rate premium system to a risk-based deposit
Climate finance is both a national imperative
insurance premium, with the existing flat rate
and a collective responsibility and it requires
premium of 12 paise per ₹100 of assessable
coordination across regulators, institutions,
deposits per annum serving as the ceiling. The
governments, and global actors.16
framework seeks to incentivise sound risk
management by linking premium rates to the 8. Overall Assessment
risk profile of banks and thereby enhancing the
I.49 Banks and NBFCs remain resilient backed
resilience of the banking system.
by strong capital buffers, improved asset quality,
7. Climate Finance and robust earnings, ensuring credit flow to
I.48 Climate risks – both physical and productive sectors and underserved population.
transition – may affect credit, market, liquidity, The Reserve Bank continues to drive secure and
and operational risks and pose material threats interoperable digital payments domestically and
to financial stability. To strengthen resilience, their integration with global payments systems.
comprehensive climate risk assessment It is also enabling responsible adoption of
underpinned by robust data infrastructure and technology and use of alternative data to expand
information flow mechanisms are required. financial inclusion. The Reserve Bank’s regulatory
Initiatives such as the proposed Reserve Bank – and supervisory policies remain focused on
Climate Risk Information System (RB-CRIS) and reinforcing cybersecurity, mitigating frauds,
ongoing work for evolving climate-risk related enhancing customer protection, integrating
disclosure reflect a systematic shift towards climate risk awareness, and preserving financial
integrating climate considerations into financial stability as an overarching goal. Balancing
risk assessment and management. Alongside, financial innovations with stability, strengthening
technology is being positioned as an enabler, public trust, and supporting sustainable
with proposals for ‘on-tap’ applications under development will continue to guide the Reserve
theme neutral cohort on climate change risks, Bank’s policies going forward.
16 Keynote Address by Shri Sanjay Malhotra, March 13, 2025, at the Policy Seminar on Climate Change Risks and Finance organised
by the Reserve Bank of India, New Delhi.
10II
GLOBAL BANKING DEVELOPMENTS
The global banking sector remained resilient as reflected in strong capital buffers, high leverage ratio
and improved profitability. Despite its current strength, global GDP growth is expected to slow down
amidst trade policy uncertainty, while inflation to moderate. Central banks have responded with monetary
policy easing. Global regulatory and supervisory initiatives have been directed at addressing concerns
emanating from interconnectedness of banks and non-banks as well as integration of artificial intelligence
and crypto-assets into the financial system. Policy makers need to remain vigilant to the evolving risks in the
financial system amidst rising trade and geopolitical uncertainty, technological innovations and climate
risks.
Introduction markets can be transmitted directly to banks.
The growing size of NBFIs along with banks’
II.1 The global economy showed resilience
rising exposure raises concerns about risk-
during 2025, supported by front-loaded imports,
taking and interconnectedness in the financial
easing financial conditions and stimulative
system. Global foreign exchange markets remain
fiscal stance in major economies, albeit with
vulnerable to macrofinancial uncertainty, raising
some signs of slowdown in the second half.
risks of spillover into other asset classes and
Inflation remained benign, aided by softer
tightening of financial conditions. Policymakers
energy prices and subdued demand. Trade
remain attentive to risks from leverage, liquidity
policy uncertainty, geoeconomic fragmentation,
mismatches, and cross-border spillovers, even
geopolitical tensions and high debt levels,
as financial innovations such as stablecoins
however, weigh on the economic outlook.
and the use of artificial intelligence (AI) reshape
II.2 The global banking sector successfully
market structures and supervisory practices.
navigated these challenges, benefiting from
In this environment, strengthening of financial
strong capital buffers and improved profitability.
sector regulation and supervision remains
Global financial markets remained volatile,
crucial for financial stability.
albeit with low funding spread and rebound in
equity prices. The role of non-bank financial II.3 Against this backdrop, this chapter covers
intermediaries (NBFIs) is growing in the capital developments in the global banking sector.
market and credit intermediation. Yet, valuation Section 2 reviews current global macroeconomic
of risky assets appears stretched amid slowing conditions. Section 3 discusses recent global
global growth and expansion in banks’ exposure banking policy developments. The financial
to NBFIs. These global shifts can create performance of the global banking sector is
vulnerabilities in the financial system. With examined in Section 4, followed by an analysis of
debt continuing to shift towards the government world’s top 100 banks ranked by Tier 1 capital
sector and exposure of banks and non-banks positions in Section 5. Section 6 concludes with
remaining elevated, stress in sovereign bond an overall assessment.
11Report on Trend and Progress of Banking in India 2024-25
2. Global Macroeconomic Conditions II.5 Global inflation remains benign, with
headline inflation projected to decline to 4.2
II.4 Global growth is projected to decelerate
per cent in 2025 and further to 3.7 per cent in
marginally to 3.2 per cent in 2025 and 3.1 per
cent in 2026 from 3.3 per cent in 2024, amidst 2026, supported by subdued demand and softer
trade and geopolitical uncertainty.1 This reflects energy prices. Nonetheless, inflation is projected
the resilience of the global economy, which is to converge back to target earlier in AEs (2.2 per
partly supported by front-loading of trade and cent in 2026) as compared to EMDEs (4.7 per
investment, and fiscal expansion in some major cent) (Chart II.1b).
economies. Nonetheless, global growth remains
II.6 Central banks responded to the easing of
below the pre-pandemic historical average of
inflation and moderation in growth by reducing
3.7 per cent.2 The risks to the outlook also
policy rates since the second half of 2024. This
remain tilted to the downside because of trade
was a significant reversal from the extended
policy uncertainty and protectionism, which can
period of monetary tightening by major central
dampen investment and disrupt supply chains.
banks to counter the surge in inflation during
Emerging market and developing economies
2022-2023. The policy path taken by central
(EMDEs) are projected to grow by 4.2 per cent
in 2025 and 4.0 per cent in 2026, as compared banks, however, varies across countries, driven
with 1.6 per cent for the advanced economies by stickiness of inflation above target as well
(AEs) (Chart II.1a). Easier financial conditions as growth and labour market concerns. The
benefit EMDEs as they continue to demonstrate European Central Bank (ECB) reduced policy
resilience on the back of improving policy rates by a cumulative 250 basis points (bps) since
frameworks. its first rate cut in June 2024, while the Bank of
Chart II.1: Growth and Inflation
a. Global Growth b. Global Inflation
(GDP at constant prices, per cent) (CPI, per cent)
10
8
6
4 4.0
3.1
2 1.6
0
-2
-4
*: Projections.
Source: World Economic Outlook, October 2025, IMF.
1 International Monetary Fund (IMF) (2025). World Economic Outlook (WEO), October.
2 10-year average of world growth from 2010 to 2019.
12
9102 0202 1202 2202 3202 4202 *5202 *6202
10
8
2.2
6
4.7
4 3.7
2
0
World Advanced economies World Advanced economies
Emerging market and developing economies Emerging market and developing economies
9102 0202 1202 2202 3202 4202 *5202 *6202GLOBAL BANKING DEVELOPMENTS
England reduced rate by a total of 150 bps since to grow faster at 3.6 per cent in 2025, before
the onset of its easing cycle in August 2024. The slowing down to 2.3 per cent in 2026.3 AEs
US Federal Reserve started easing policy rate in are projected to run a deficit in their current
September 2024, with a cumulative reduction of account in 2025 as against a surplus in 2024.
175 bps so far. In contrast, the Bank of Japan This is mainly on account of continued trade
adopted a monetary tightening cycle, with a deficit in the US and lowering surplus in the
cumulative increase of 85 bps since March 2024 Euro area. In EMDEs, the current account
to curb rising inflation (Chart II.2a). Amongst the surplus is projected to remain unchanged at 1.0
BRICS group, South Africa cut the policy rate in per cent of GDP in 2025, before declining to 0.6
September 2024, followed by India in February per cent in 2026 (Chart II.3a). This is partly due
2025 and Russia in June 2025. After a pause to pre-emptive trade ahead of prospective tariffs
since August 2023, China further reduced the widening the surplus for China.
rate in July 2024. Brazil, however, adopted a
II.8 The general government gross debt for
monetary tightening cycle since September
AEs is projected to increase marginally to 110.2
2024, increasing the policy rate by 450 bps, to
per cent of GDP in 2025 and further to 111.8
bring inflation down to its target (Chart II.2b).
per cent of GDP in 2026. The EMDEs are also
II.7 World trade remained robust despite under rising fiscal strain with the debt-GDP
protectionism, driven by front-loaded imports ratio projected to rise to 72.7 per cent in 2025
and exports in response to proposed high US and 75.8 per cent in 2026, due to higher interest
import tariffs. Global trade volume is projected payments and growth moderation (Chart II.3b).
Chart II.2: Monetary Policy Rates
a. Advanced Economies b. BRICS Group
(Per cent) (Per cent)
6
5
4 3.75
3 3.625
2 2.0
1
0.75
0
-1
United Kingdom Japan Brazil Russia India
United States Euro area China South Africa
Source: Bank for International Settlements (BIS).
3 IMF (2025). World Economic Outlook (WEO), October.
13
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25
20
16.0
15 15.0
10
6.75
5 5.25
3.0
0
91-naJ 91-yaM 91-peS 02-naJ 02-yaM 02-peS 12-naJ 12-yaM 12-peS 22-naJ 22-yaM 22-peS 32-naJ 32-yaM 32-peS 42-naJ 42-yaM 42-peS 52-naJ 52-yaM 52-peSReport on Trend and Progress of Banking in India 2024-25
Chart II.3: Current Account Balance and General Government Debt
a. Current Account Balance (CAB) and World Trade b. General Government Gross Debt
(CAB as per cent of GDP, left scale; per cent change, right scale) (Per cent of GDP)
2.0 15
1.5
10
1.0
0.6 5
2.3
0.5
0.1 0
0.0
-5
-0.5
-1.0 -10
*: Projections.
Source: World Economic Outlook, October 2025, IMF.
3. Global Banking Policy Developments January 1, 2023. As of September 2025, most
member jurisdictions have published their
II.9 The global outlook has become more
rules implementing the final elements of Basel
challenging amidst increased trade and
III. Since end-September 2024, the final Basel
economic policy uncertainty. The COVID-19
III standards became effective in more than
induced market turmoil of March 2020, and the
40 per cent of the 27 member jurisdictions.
banking stress of March 2023 demonstrated that
The revised credit risk and operational risk
vulnerabilities could unravel quickly, reinforcing
standards, as well as the output floor, have now
the importance of vigilance, proactive policy
become effective in around 80 per cent of the
responses and international cooperation to
member jurisdictions, while the credit valuation
maintain global financial stability. Regulators
adjustment standard in nearly 70 per cent, and
and central banks are taking measures to
the revised market risk standards in nearly 40
mitigate systemic risks emanating from the
per cent.
growing size of NBFIs and their deepened ties
II.11 There has been further progress in other
with banks, integration of artificial intelligence
Basel III standards that had implementation
and crypto-assets into the financial system, and
dates before January 1, 2023. Since end-
the looming threat of climate change.
September 2024, one additional jurisdiction
3.1 Building Resilient Financial Institutions4
has implemented margin requirements for non-
II.10 Underlining the importance of prudent centrally cleared derivatives, while another has
regulation and effective supervision, the Basel completed implementing the interest rate risk
Committee on Banking Supervision (BCBS) in the banking book. Additionally, two member
has prioritised implementation of all the jurisdictions have published the final regulations
aspects of the Basel III framework effective on crypto-assets. To enhance transparency
4 BIS (2025). RCAP on Timeliness: Basel III Implementation Dashboard, October 3 update.
14
9102 0202 1202 2202 3202 4202 *5202 *6202
125
111.8
105
85
75.8
65
45
25
5
-15
Emerging market and developing economies Advanced economies
World trade volume of goods and services (RHS) Advanced economies Emerging market and developing economies
9102 0202 1202 2202 3202 4202 *5202 *6202GLOBAL BANKING DEVELOPMENTS
and accountability, the Federal Reserve Board the consultation report issued in July 2024,
proposed revising its supervisory stress testing published a report evaluating these reforms
framework by publishing the stress test models in January 2025. It is noted that regulatory
and scenarios for public comments. reforms improved the resilience of securitisation
markets, with no strong evidence of material
3.2 Cyber Resilience
negative impact on financing activity.7 Complex
II.12 In an increasingly digital and inter
structures that played a role in the GFC, such as
connected environment, cyber and operational
securitisation of subprime assets, collateralised
incidents have become a growing threat to
debt obligations and re-securitisations, have
financial stability. Supervisory authorities depend
significantly declined, while market transparency
on timely incident reporting to track disruptions
has improved. Further, the assessment finds that
and coordinate responses, but fragmented
the reforms appear to have prompted a shift
frameworks across jurisdictions pose challenges.
in the risk from banks to the NBFI sector, as
To address this gap, the Financial Stability
banks have moved towards investing in higher-
Board (FSB), in April 2025, published its final
rated tranches. This shift is partly driven by the
report on the Format for Incident Reporting
growing role of non-banks and their increased
Exchange (FIRE), introducing a standardised
participation in the securitisation markets.
reporting format to reduce fragmentation and
3.4 Vulnerabilities in Non-bank Commercial
ease compliance for internationally active firms.5
Real Estate Market8
This has been developed in close collaboration
with the private sector and is also designed to be II.14 The commercial real estate (CRE) market
applicable to third-party service providers and
has experienced significant stress, driven by weak
entities outside the financial sector. To support
demand for offices and retail space since the
global implementation, the FSB has also issued
pandemic and higher borrowing costs, following
a taxonomy package that includes a data model,
monetary policy tightening in 2022-2023. While
which enables machine-readable formats of
banks continue to be the main source of financing
FIRE.6
for CRE, some jurisdictions have a sizeable share
3.3 G20 Financial Regulatory Reforms on of non-bank investors’ participation, especially
Securitisation property funds and real estate investment trusts.
II.13 The regulatory reforms introduced after II.15 The FSB highlighted three main
the global financial crisis (GFC) aimed to improve vulnerabilities associated with these non-
transparency, address conflicts of interest, bank CRE investors – liquidity mismatches
strengthen the regulatory capital treatment in open-ended funds, high financial
for banks’ securitisation exposures and align leverage, and opacity in asset valuations.
incentives associated with securitisation. The report also highlighted a fourth broader
The FSB, based on the feedback received on vulnerability due to interlinkages between
5 FSB (2025). Format for Incident Reporting Exchange (FIRE): Final Report, April.
6 FSB (2025). Format for Incident Reporting Exchange (FIRE): Taxonomy Package. April.
7 FSB (2025). Evaluation of the Effects of the G20 Financial Regulatory Reforms on Securitisation: Final Report. January.
8 FSB (2025). Vulnerabilities in Non-bank Commercial Real Estate Investors. June.
15Report on Trend and Progress of Banking in India 2024-25
banks and these non-bank CRE investors, leverage. The vulnerabilities from leverage and
raising the potential for spillover to the banking liquidity mismatches in parts of the NBFI sector
system. that gave rise to market stress episodes continue
with the global financial system.10 The FSB
3.5 Non-bank Financial Intermediation
recommends that authorities should: (i) have
II.16 The role of NBFIs in financing the real
a domestic framework in place to identify and
economy has expanded in the last decade, and
monitor financial stability risks created by NBFI
the sector accounted for 51.0 per cent of the
leverage; and (ii) take steps to select, design
global financial assets in 2024. The experience
and calibrate policy measures to address the
of the global financial crisis of 2008, the market
identified financial stability risks in a flexible,
turmoil of March 2020, Archegos failure of
targeted and proportionate way.
March 2021 and commodities markets turmoil
II.18 The incidents also highlight the need for
in 2022 demonstrate that NBFIs can also create
policy adjustments to deal with liquidity strains
or amplify systemic risk. The FSB highlights
in the NBFI sector, arising from spikes in margin
three main forms of linkages between banks and
and collateral calls in times of market stress.11
NBFIs: (i) funding and deposit relationships,
The FSB sets out steps to enhance the liquidity
where non-banks place deposits with banks; (ii)
preparedness of non-bank market participants
lending, repo and other credit exposures from
for margin and collateral calls in centrally and
banks to non-banks; and (iii) holdings of bank-
non-centrally cleared derivatives and securities
issued securities by investment funds, insurers
markets.
and pension funds.9 The FSB is collaborating
II.19 The FSB has identified several data-
with standard-setting bodies across a wide range
related challenges that impede authorities’ ability
of areas to assess and address vulnerabilities
to effectively assess vulnerabilities. Accordingly,
that could lead to systemic risk. The policy
it has established a Non-bank Data Task Force
objective has been to reduce excessive spikes in
in July 2025 to strengthen authorities’ ability to
the demand for liquidity; enhance the resilience
identify, assess and mitigate financial stability
of liquidity supply in stress; and improve the
risks emanating from the non-bank sector. The
risk monitoring and preparedness of authorities
FSB also puts out a workplan to address non-
and market participants. The implementation of
bank data challenges with two areas of high
reforms in this direction continues to advance,
priority, viz., leveraged trading strategies in core
albeit at an uneven pace across jurisdictions.
financial markets and private finance.12
II.17 Over time, the NBFI sector has become
3.6 Climate and Nature-related Risks
more diverse and increasingly intricate, with
business models and strategies that are II.20 Climate transition plans have gained
constantly evolving and frequently employing prominence as the means for financial
9 FSB (2025). Global Monitoring Report on Nonbank Financial Intermediation, December.
10 FSB(2025). Enhancing the Resilience of Nonbank Financial Intermediation: Progress Report, July.
11 FSB(2024). Liquidity Preparedness for Margin and Collateral Calls: Final Report, December.
12 FSB(2025). FSB Workplan to Address Nonbank Data Challenges, July.
16GLOBAL BANKING DEVELOPMENTS
institutions and non-financial companies to receiving wholesale payments. The average
communicate their strategies and approaches global cost of such payments varies widely
to manage climate-related risks. As part of its across regions – lowest in Asia-Pacific and
roadmap for addressing financial risks from highest in Sub-Saharan Africa. Going forward,
climate change, the FSB published a report modernising domestic payment infrastructure
in January 2025, assessing the relevance of and providing a level playing field for bank and
transition plans for financial stability.13 The non-bank payment service providers is essential
report highlights the role of transition plans to enhance cross-border payments.
in addressing climate-related financial risks
3.8 Crypto-assets
through three channels – contributing to
better risk management, informing investment II.22 Stablecoins – crypto-assets designed
decisions and supporting authorities’ macro- to maintain a stable value by referencing one
monitoring of transition and physical risks both or more fiat currencies – have become a key
in the financial system and the real economy. component of the digital asset ecosystem. The
As they provide forward-looking information, market capitalisation of stablecoins reached
transition plans hold potential for enhancing approximately US$ 300 billion at end-September
financial stability. 2025.15 The increasing adoption of stablecoins
raises concerns for both monetary policy and
3.7 Cross-border Payments
financial stability, particularly in EMDEs as
II.21 In 2020, G20 launched a roadmap for
their widespread use can weaken central banks’
faster, cheaper, more transparent and inclusive
control over money supply and interest rates.
cross-border payments and endorsed a set
Proliferation of stablecoins also creates risk
of global quantitative targets in this regard.
of currency substitution, weakening the effect
The FSB, in October 2025, published the
of monetary policy transmission and banking
consolidated progress report on this G20
disintermediation.16
roadmap.14 The report has highlighted that while
a majority of the roadmap actions are completed, II.23 According to the Bank for International
these efforts have not yet translated into tangible Settlements (BIS), any form of money should
improvements, with key performance indicators pass three tests to serve as the backbone of
for 2025 showing only a slight improvement. the monetary system – singleness, elasticity
The access to cross-border payments remained and integrity. Stablecoins perform poorly when
broad, with slight improvement in transparency assessed against these standards. Stablecoins
of information to end-users. Although the global often trade at varying exchange rates, thus
speed of wholesale cross-border payments undermining singleness. They also fail the
improved, wide variations across regions persist elasticity test because the issuer’s balance sheet
with South Asia lagging in terms of speed of cannot be expanded at will. Furthermore, as a
13 FSB (2025). The Relevance of Transition Plans for Financial Stability, January.
14 FSB (2025). G20 Roadmap for Enhancing Cross-border Payments: Consolidated Progress Report for 2025, October.
15 IMF (2025), Global Financial Stability Report, October.
16 Stablecoins – Do They Have a Role in the Financial System? Keynote address delivered by Shri T Rabi Sankar, December, 12, 2025,
at the Mint Annual BFSI Conclave 2025, Mumbai.
17Report on Trend and Progress of Banking in India 2024-25
Table II.1: Regulations for Stablecoins in Select Economies
Country Regulation Key Features
1 2 3
United States Guiding and Establishing National Innovation for Dual federal-state regulation with 100 per cent backup in terms of issuers’
U.S. Stablecoins (GENIUS) Act17 holding of highly liquid assets.
EU Markets in Crypto-Assets (MiCA) Regulation, Classifies stablecoins into two categories – asset-referenced tokens and e-money
202418 tokens. Issuers must obtain licenses to operate within EU jurisdictions.
Singapore Monetary Authority of Singapore (MAS) Stablecoin Applicable to single-currency stablecoins, pegged to the Singapore dollar or any
Regulatory Framework, 202319 G10 currency, that is issued in Singapore.
Japan Regulatory Framework for Crypto-assets and Only banks, fund transfer service providers, and trust companies are entitled
Stablecoins20 to issue digital-money type stablecoins.
digital bearer instrument on borderless public fostering innovation, boosting efficiency and
blockchains, stablecoins circulate without strengthening resilience. It can help with
issuer oversight, compromising integrity and regulatory compliance, enable advanced data
raising concerns about their use for financial analytics, produce personalised financial
crimes, such as money laundering and terrorism products and enhance fraud detection. The FSB,
financing.21
however, identified key AI-related vulnerabilities
II.24 Stablecoins are evolving under formal which may have implications for financial
regulatory oversight, and many countries have stability.23 It identified a range of indicators to
put in place stablecoin regulations to safeguard support monitoring of AI adoption and related
investors (Table II.1). The FSB released a follow- vulnerabilities in the financial system. These
up report of its global regulatory framework include measuring the extent of AI adoption in
governing crypto-asset activities in November the financial institution, concentration of third-
2025. The report revealed that while progress party AI service providers and monitoring AI-
has been made in regulating crypto-asset related cyber events.24
activities and global stablecoins, significant
II.26 At end-2024, the Irving Fisher Committee
gaps remain. Global stablecoin regulation is
on Central Bank Statistics conducted a
fragmented, and cross-border coordination is
survey covering six dimensions to assess the
inadequate, hindering effective oversight and
current state of AI adoption: (i) scope and
timely responses to systemic risks.22
interest; (ii) expectations; (iii) applications; (iv)
3.9 Artificial Intelligence and Tokenisation
organisational policies, governance and risks;
II.25 Artificial intelligence (AI) has the (v) IT stack; and (vi) collaborative strategies.25
potential to reshape the financial system by The survey highlighted two key findings: first,
17 The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. Stablecoin Legislation: An Overview of the GENIUS Act of 2025,
Library of Congress, USA.
18 http://esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica.
19 https://www.sgpc.gov.sg/api/file/getfile/Media%20Release_MAS%20Finalises%20Stablecoin%20Regulatory%20Framework.pdf?path=/sgpcmedia/
media_releases/mas/press_release/P-20230815-2/attachment/Media%20Release_MAS%20Finalises%20Stablecoin%20Regulatory%20Framework.pdf
20 https://www.fsa.go.jp/en/news/2022/20220914-2/02.pdf.
21 BIS (2025). Annual Economic Report, June.
22 FSB(2025). Thematic Review on FSB Global Regulatory Framework for Crypto-asset Activities.
23 FSB (2024). The Financial Stability Implications of Artificial Intelligence, November.
24 FSB (2025). Monitoring Adoption of Artificial Intelligence and Related Vulnerabilities in the Financial Sector, October.
25 BIS (2025). Governance and Implementation of Artificial Intelligence in Central Banks, IFC Report No. 18.
18GLOBAL BANKING DEVELOPMENTS
effective deployment of AI requires robust the case for tokenised government bonds,
governance frameworks, which are still evolving; highlighting their potential to become a
and second, implementation of AI entails trade- foundational element in tokenised financial
offs in IT infrastructure, as rising computational ecosystems, central bank reserves and
demands raise costs and cloud-based solutions commercial bank money. Tokenisation of
while offering scalability, pose data security government bonds, which accounts for the
and sovereignty challenges. Another important largest segment of global financial assets in 2024
issue relates to the choice of closed versus open- with an outstanding amount of around US$ 80
source AI models. trillion, could bolster trust, enhance settlement
efficiency, and support monetary operations. The
II.27 Tokenisation — the recording of claims on
study, however, emphasised that these benefits
real or financial assets from traditional ledgers
remain contingent on scalability, regulatory
onto programmable platforms — is emerging as
clarity, and supporting infrastructure.
a key element of next-generation financial market
infrastructure. The BIS identified tokenisation 4. Performance of the Global Banking Sector
as the next step in the evolution of monetary and
II.29 At end-December 2024, bank credit
financial system, as it enables the integration
to private non-financial sector decelerated
of messaging, reconciliation, and asset transfer
across advanced and emerging economies, with
into a single operation.26 The report highlights
credit growth turning negative in AEs (Chart
its potential to reduce friction in existing
II.4a). Even though monetary policy started
systems and introduce more flexible and
easing in H2:2024, the tight credit conditions
automated contracting mechanisms. In cross-
weighed on activity through 2024, due to the
border payments, tokenisation could streamline
long lags in transmission.28 In H1:2025, credit
correspondent banking by replacing the current
growth picked up in both groups, albeit with a
chain of intermediaries and sequential account
variation across countries. Among emerging
updates with a single, integrated process. It
market economies (EMEs), Brazil and South
can also improve the functioning of capital
Africa were exceptions where credit growth
markets through better collateral management,
increased in 2024 compared to 2023 (Chart
margining, and delivery-versus-payment
II.4b and c). Brazil witnessed strong credit
processes.
growth despite a tight monetary policy due to
II.28 Tokenisation initiatives are gaining high income growth and success in expanding
momentum globally. A BIS study27 assessed financial inclusion.29
26 BIS (2025). Annual Economic Report, June.
27 Aldasoro, I., Cornelli, G., Frost, J., Koo Wilkens, P., Lewrick, U., & Shreeti, V. (2025). Tokenisation of Government Bonds: Assessment
and Roadmap. BIS Bulletin No. 107, July.
28 Quaglietti, L. (2024). Recent Credit Dynamics across Advanced Economies: Drivers and Effects. OECD Economics Department
Working Papers, No. 1826.
29 https://www.imf.org/en/News/Articles/2025/10/09/Explaining-Strong-Credit-Growth-in-Brazil-Despite-High-Policy-Rates.
19Report on Trend and Progress of Banking in India 2024-25
Chart II.4: Bank Credit to Private Non-Financial Sector
a. All Economies b. Select Advanced Economies
(Y-o-y growth, per cent) (Y-o-y growth, per cent)
20
15
10 8.6
7.8
5 6.8
0
-5
All reporting countries AEs EMEs US UK Euro area Japan
c. Select Emerging Market Economies
(Y-o-y growth, per cent)
Brazil Russia India China South Africa
Source: Total Credit Statistics, BIS.
4.1 Asset Quality ratio attributable to distress in key sectors,
particularly real estate.31
II.30 In 2024, the asset quality of banks,
measured by the ratio of non-performing 4.2 Provision Coverage Ratio
loans to total gross loans (NPL ratio),
II.31 A higher provision coverage ratio (PCR)
deteriorated for select AEs (Table II.2). Euro
indicates higher resilience of the bank to loan
area banks’ NPL ratios remained low despite
losses. Among select AEs, banks in the US
a slight uptick in some economies in 2024,
maintained the highest PCR, despite some
driven mainly by the corporate loan book
moderation in 2024 (Chart II.5a). The ratio,
(notably commercial real estate and small and
however, remained below 50 per cent in other
medium loans).30 For most EMDEs, asset
AEs. Among EMDEs, banks in China maintained
quality showed improvement including for
high PCR and the ratio improved in 2024. (Chart
Vietnam, which continued to have high NPL
II.5b).
30 https://www.ecb.europa.eu/press/financial-stability publications/fsr/html/ecb.fsr202505~0cde5244f6.en.html#toc2.
31 Annual Consultation Report on Vietnam (2024). ASEAN+3 Macroeconomic Research Office. Available at - https://amro-asia.org/wp-
content/uploads/2025/03/2024-Vietnam-ACR_publication_21Feb2025.pdf.
20
91-ceD 02-ceD 12-ceD 22-ceD 32-ceD 42-ceD 52-raM 52-nuJ
14
12
10
8
6
3.8
4
2.9
2 1.6
0
-2 -1.9
-4 91-ceD 02-ceD 12-ceD 22-ceD 32-ceD 42-ceD 52-raM 52-nuJ
25
20
15
12.5
11.0
10 9.4
6.2
5
4.0
0
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4.3 Bank Profitability
Table II.2: Asset Quality
(NPL Ratio)
II.32 Profitability, measured by return on assets
(Per cent)
Country 2015 2020 2023 2024 Q1:2025 Q2:2025 (RoA), increased in most AEs in 2024, with
1 2 3 4 5 6 7
slight moderation in Australia and Netherlands
Advanced Economies
(Chart II.6a). EMDEs also generally showed an
Australia 0.89 1.11 0.85 0.99 1.06 N.A.
Canada 0.52 0.53 0.45 0.57 0.65 0.68 improvement in profitability, albeit with a few
Japan 1.47 1.22 1.28 1.10 1.10 N.A.
exceptions (Chart II.6b). In 2024, widening net
UK 1.01 0.98 0.98 1.02 0.98 0.96
US 1.47 1.07 0.85 0.97 0.95 0.93 interest margins and, for larger banks, strong
Euro area performance from asset management, advisory,
France 3.52 2.38 2.06 2.09 2.07 N.A. and trading services expanded revenues. At the
Germany N.A. N.A. 1.54 1.77 1.73 1.79
same time, the reduction of loan loss provisions
Italy 18.06 4.36 2.71 2.77 N.A. 2.71
Netherlands 2.71 1.88 1.55 1.64 1.58 1.48 has been a substantial driver of RoA across all
Spain 5.09 2.85 3.06 2.87 2.82 2.69
regions.32
Emerging Market and Developing Economies
Brazil 2.85 1.87 2.84 2.72 3.08 N.A. 4.4 Capital Adequacy
China 1.67 1.84 1.59 1.50 1.51 1.49
India 5.88 7.94 3.36 2.50 2.34 2.35 II.33 Banks have substantially increased their
Indonesia 2.32 2.64 1.96 1.94 2.01 2.05 capital levels, enhancing their ability to absorb
Mexico 2.60 2.56 2.08 2.02 2.00 2.10
losses. The capital adequacy, measured by
Philippines 1.89 3.53 3.19 3.20 3.26 3.27
Russia 8.38 8.16 4.51 4.58 N.A. N.A. regulatory capital to risk-weighted assets ratio
South Africa 3.12 5.18 4.72 4.54 4.60 N.A.
(CRAR), remains above the Basel III norms in all
Thailand 2.68 3.23 2.76 2.81 2.92 N.A.
Vietnam 2.76 1.87 5.41 4.85 4.91 N.A. major economies. The IMF’s global stress test
N.A.: Data not available. shows that the global banking sector remains
Notes: 1. Data for 2024 for Russia pertain to Q1:2024.
2. Annual data for Japan pertain to the first quarter of next year. broadly resilient. However, under the scenario of
Source: Financial Soundness Indicators, IMF.
Chart II.5: Provision Coverage Ratio
(NPL provisions as per cent of non-performing loans)
a. Select Advanced Economies b. Select Emerging Market and Developing Economies
(Per cent) (Per cent)
200
160
120
80
40
0
2024 2023 2024 2023
Notes: 1. Bar size higher than the dash line indicates improvement in the indicator.
2. Data for 2024 for Russia pertain to Q1:2024.
Source: Financial Soundness Indicators, IMF.
32 IMF (2025). Global Financial Stability Report, April.
21
ailartsuA sdnalrehteN adanaC ynamreG niapS ecnarF ylatI KU SU
250
200
150
100
50
0
acirfA
htuoS
dnaliahT aisenodnI manteiV senippilihP aidnI aissuR ocixeM lizarB anihCReport on Trend and Progress of Banking in India 2024-25
Chart II.6: Return on Assets
a. Select Advanced Economies b. Select Emerging Market and Developing Economies
(Per cent) (Per cent)
1.6
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
2024 2023 2024 2023
Notes: 1. Bar size higher than the dash line indicates improvement in the indicator.
2. Data for 2024 for Russia pertain to Q1:2024.
Source: Financial Soundness Indicators, IMF.
severe stagflation, common equity Tier 1 capital Table II.3: Regulatory Capital to Risk-weighted
Assets Ratio
(CET1) ratio of banks representing about 18 per
(Per cent)
cent of global bank assets falls below 7 percent.33
Country 2015 2020 2023 2024 Q1:2025 Q2:2025
This is an improvement from 2023 stress test 1 2 3 4 5 6 7
Advanced Economies
results due to improved capitalisation across
Australia 13.8 17.6 19.9 20.2 20.5 N.A.
most regions. Canada 14.2 16.1 17.1 16.8 16.9 17.5
Japan 15.9 16.6 16.4 16.7 16.7 N.A.
II.34 Amongst AEs, banks in the UK UK 19.6 21.6 21.3 21.3 20.7 20.5
maintained high capital buffers, while US 14.1 16.3 15.9 16.3 16.3 16.8
Euro Area
banks in the US maintained lower CRAR,
France 16.4 19.5 19.5 19.8 19.8 N.A.
albeit with some improvement in 2024. Germany N.A. N.A. 19.9 20.5 20.1 20.5
Italy 14.8 19.3 19.4 19.7 N.A. 19.8
In the Euro area, high internal capital generation
Netherlands 20.1 22.8 21.1 20.9 21.2 21.6
in the form of retained earnings continued to have Spain 14.7 17.0 17.1 17.5 17.8 17.8
Emerging Market and Developing Economies
a strong positive effect on banks’ capital ratios.34
Brazil 16.4 19.1 17.9 17.1 17.0 N.A.
The capital ratios in EMDEs show a mixed China 13.5 14.7 15.1 15.7 15.3 15.6
India 12.7 15.6 15.6 16.4 17.0 17.4
pattern, with Indonesian banks maintaining
Indonesia 18.9 22.1 25.8 25.1 23.7 24.3
CRAR above 25 per cent in 2024 (Table II.3). Mexico 15.0 17.7 18.8 19.1 19.9 20.0
Philippines 15.3 16.3 16.3 15.8 15.9 15.7
4.5 Leverage Ratio Russia 12.7 13.8 13.1 12.9 N.A. N.A.
South Africa 14.2 16.6 16.1 16.3 16.1 N.A.
II.35 Leverage ratio, defined as regulatory Tier Thailand 17.1 19.8 19.6 20.1 20.4 N.A.
1 capital to total assets, measures the extent to Vietnam 12.8 11.1 11.7 12.3 12.4 N.A.
N.A: Data not available.
which bank assets are funded by equity, serving Notes: 1. Data for 2024 for Russia pertain to Q1:2024.
2. Annual data for Japan pertain to the first quarter of next year.
Source: Financial Soundness Indicators, IMF.
33 IMF (2025). Global Financial Stability Report, October. The global stress test examined 669 banks from 29 countries, accounting for
74 per cent of global banking sector assets.
34 ECB (2025). Financial Stability Review, November.
22
ecnarF KU adanaC ailartsuA sdnalrehteN niapS SU ylatI
3.0
2.5
2.0
1.5
1.0
0.5
0.0
-0.5
-1.0
-1.5 anihC dnaliahT manteiV senippilihP aidnI lizarB acirfA
htuoS
aissuR aisenodnI ocixeMGLOBAL BANKING DEVELOPMENTS
Chart II.7: Leverage Ratio
(Regulatory Tier 1 capital as per cent of total assets)
a. Select Advanced Economies b. Select Emerging Market and Developing Economies
(Per cent) (Per cent)
15
13
11
9
7
5
3
2024 2023 2024 2023
Notes: 1. Bar size higher than the dash line indicates improvement in the indicator.
2. Data for 2024 for Russia pertain to Q1:2024.
3. Annual data for Japan pertain to the first quarter of next year.
Source: Financial Soundness Indicators, IMF.
as a safeguard against excessive risk taking. prices globally alongside a weaker dollar eased
Banks in both AEs and EMDEs maintained financial conditions around the world. Bank
leverage ratio well above the minimum Basel equity prices, particularly in the Euro area, fell
III requirement of 3.0 per cent. Among AEs, sharply following the US tariff announcement on
banks in the US continued to maintain high April 2, 2025, reflecting investor concerns about
leverage ratio (Chart II.7a). The ECB, in rising trade tensions and their potential impact
December 2024, subjected banks to increased on global growth and financial stability. However,
capital on account of the risk of excessive post a 90-day pause on implementation of tariffs
leverage. Bank-specific mandatory requirements announced on April 9, the stock indices showed
under the leverage ratio Pillar 2 requirement signs of recovery. Recently, stronger-than-
ranged between 10 and 40 basis points, in expected European bank earnings, which were
addition to the minimum required 3 per cent boosted by trading on market volatility, have
leverage ratio.35 Banks in EMDEs generally supported their stock prices (Chart II.8a).36 After
maintained higher leverage ratio than AEs and the recent peak in April 2025, following the tariff
the ratio improved in many economies in 2024 announcement, the credit default swap (CDS)
(Chart II.7b). spreads have narrowed, reflecting improved
market sentiment and lower perceived default
4.6 Financial Market Indicators
risk (Chart II.8b).
II.36 Tariffs and trade policy uncertainty are
5. World’s Largest Banks
associated with increased financial market
volatility. After abrupt tightening post April 2, II.37 The list of top 100 global banks, based on
2025 tariff announcement, the rebound in asset their Tier 1 capital, continues to be dominated
35 Banking Supervision Press Release (2024). European Central Bank, December.
36 Uysal, P., Lynch, K. & Zer, I. (2025). US Reciprocal Tariff Announcement and European Bank Stock Performance. FEDS Notes,
Washington: Board of Governors of the Federal Reserve System, August 26.
23
acirfA
htuoS
lizarB aidnI manteiV aissuR senippilihP ocixeM dnaliahT aisenodnI
11
9
7
5
3
napaJ adanaC ecnarF ailartsuA niapS KU sdnalrehteN ylatI ynamreG SUReport on Trend and Progress of Banking in India 2024-25
by China in 2024. (Chart II.9a). In terms of total proportion of banks with NPL ratios greater
assets, the distribution shifted between 2020 than or equal to 2 per cent as compared to the
and 2024, with AEs holding a smaller share, previous year. In contrast, there was a marginal
and both China and other EMDEs increasing
deterioration in the asset quality of banks in
their respective shares (Chart II.9b). The trend
AEs. Additionally, all Chinese banks in the top
of declining international business and growing
100 global banks list consistently maintained
focus on local markets continued for the largest
their NPL ratios below 2 per cent (Chart II.10a).
banks in AEs.
The provision coverage ratio, an indicator of loss
II.38 In 2024, the asset quality of banks in absorbing capacity, of all Chinese banks in the
EMDEs improved, as reflected in the lower top 100 banks, remained above 100 per cent.
Chart II.9: Distribution of the Top 100 Global Banks by Tier 1 Capital
a. Distribution of Top 100 Banks by Tier 1 Capital b. Share of Country Groups in the Total Assets of
(Number of Banks) Top 100 Global Banks
25 (Per cent)
21
20
15 14
10
6 66
5 5 5 4 4 3 3 3 3 3
2 2 2 2
1 1 1 1 1 1
0
2024 2020
Notes: 1. Bar size higher than the dash line indicates increase in the number of banks in 2024 as compared to 2020.
2. Data labels represent number of banks in 2024.
Source: Banker Database, Financial Times.
24
anihC SU napaJ adanaC KU aeroK
htuoS
ecnarF ailartsuA aidnI lizarB ynamreG sdnalrehteN eropagniS niapS dnalreztiwS ylatI EAU aibarA
iduaS
aissuR airtsuA kramneD dnalniF yawroN rataQ
Chart II.8: Market-based Indicators of Banks’ Health
a. Bank Equity Price Indices b. Five-Year Bank CDS Spread
(Index (January 1, 2020 =100) (Index (January 1, 2020 =100)
500
450
400
350
300
250
200
150
100
50
0
US EU EMEs China India North America Europe India China
Sources: Refinitiv Datastream; and Bloomberg.
80
70 67.8
61.2 60
50
40 34.4
30 28.7
20
10
3.5 4.4
0
2020 2024
AEs China EMDEs (ex-China)
02-luJ-10 02-tcO-10 12-naJ-10 12-rpA-10 12-luJ-10 12-tcO-10 22-naJ-10 22-rpA-10 22-tcO-10 32-naJ-10 32-rpA-10 32-luJ-10 32-tcO-10 42-naJ-10 42-rpA-10 42-luJ-10 42-tcO-10 52-naJ-10 52-luJ-10 02-naJ-10 02-rpA-10 02-luJ-10 02-tcO-10 12-naJ-10 12-rpA-10 12-luJ-10 12-tcO-10 22-naJ-10 22-rpA-10 22-luJ-10 22-tcO-10 32-naJ-10 32-rpA-10 32-luJ-10 32-tcO-10 42-naJ-10 42-rpA-10 42-luJ-10 42-tcO-10 52-naJ-10 52-rpA-10 52-luJ-10 52-tcO-10
220
200
180
160
140
120
100
80
60
40
02-naJ-10 02-rpA-10 22-luJ-10 52-rpA-10 52-tcO-10GLOBAL BANKING DEVELOPMENTS
Chart II.10: Asset Quality of the Top 100 Global Banks
a. Distribution of NPL Ratio by Country Groups b. Distribution of PCR by Country Groups
2024 30.8 69.2
2023
2022
2024 100.0
2023
2022
2024 56.9 43.1
2023
2022
0 20 40 60 80 100
NPL ratio <2 per cent NPL ratio >= 2 per cent PCR<=100 per cent PCR>100 per cent
NPL: Non-performing loans PCR: Provision coverage ratio
Note: Data in legends indicate per cent share of banks in total.
Source: Banker Database, Financial Times.
In other EMDEs, the share of banks with PCR demonstrate superior profitability than AE
more than 100 per cent decreased to 69.2 per and Chinese counterparts. EMDEs had higher
cent in 2024 from 75.0 per cent a year ago. In concentration of banks with return on assets
contrast, more than 50 per cent of the banks in (RoA) in the range of one to two per cent in 2024.
AEs had PCR below 100 per cent. (Chart II.10b). In China, about 95 per cent of the banks had
RoA in the range of zero to one per cent (Chart
II.39 The global banking system showed
II.11c). Cost-to-income ratio is a key measure
resilience as banks remained well capitalised.
of operational efficiency of the bank. Chinese
In 2024, the modal class for capital adequacy
banks demonstrated greater efficiency than their
ratio for banks in EMDEs (excluding China)
counterparts in both emerging and advanced
and AEs was greater than or equal to 16 per
economies, as indicated by their consistently
cent, while the modal class of banks in China
lower cost-to-income ratio (Chart II.11d).
remained in the 12–14 per cent band. China
and other EMDEs showed an increase in the 6. Overall Assessment
share of banks in the highest capital bracket
II.41 The global macroeconomic conditions
in 2024 vis-à-vis 2020 (Chart II.11a). Leverage
remained in a state of flux amidst trade tensions
ratio, calculated as ratio of Tier 1 capital to total
and geoeconomic fragmentations. The risks to
assets, of large global banks strengthened in
growth outlook remain tilted to the downside.
2024. Banks in China and other EMDEs showed
With growth moderating and inflation falling,
a notable improvement in leverage ratios, with
most central banks continued with monetary
modal class shifting upwards. In AEs, the modal
policy easing cycles since 2024. The global
class remained at four to six per cent (Chart
banking sector remained broadly resilient
II.11b).
supported by stronger capital positions and
II.40 In terms of profitability, top banks improved profitability, although bank credit
in EMDEs (excluding China) continued to growth moderated in 2024. While exposures to
25
sEDME )anihC
xe(
anihC
sEA
2024 46.2 53.8
2023
2022
2024 100.0
2023
2022
2024 81.5 18.5
2023
2022
0 20 40 60 80 100
sEDME )anihC
xe(
anihC
sEAReport on Trend and Progress of Banking in India 2024-25
Chart II.11: Soundness of the Top 100 Global Banks
a. Distribution by CRAR b. Distribution by Leverage Ratio
(Per cent of banks) (Per cent of banks)
2020 2024 2020 2024
c. Distribution by Return on Assets d. Distribution by Cost-to-Income Ratio
(Per cent of banks) (Per cent of banks)
2020 2024 2020 2024
Source: Banker Database, Financial Times.
non-bank financial institutions pose potential financial stability and to ensure that banks
vulnerabilities, system-wide stress indicators remain a reliable conduit for supporting global
remain contained. growth. Apart from prudent regulation and
II.42 Continued vigilance through robust supervision, fiscal discipline and calibrated
supervision, effective macroprudential monetary policy actions also remain crucial for
frameworks, and enhanced oversight of macro-financial stability in a state of heightened
interconnectedness will be crucial to safeguard global uncertainty.
26
4.51 4.51
2.96
9.24
6.82 6.82
1.3
0.02
9.67 100
80
60
40
20
0 01
<
RARC
21
<
RARC
≤
01
41
<
RARC
≤
21
61
<
RARC
≤
41
61
≥
RARC
01
<
RARC
21
<
RARC
≤
01
41
<
RARC
≤
21
61
<
RARC
≤
41
61
≥
RARC
01
<
RARC
21
<
RARC
≤
01
41
<
RARC
≤
21
61
<
RARC
≤
41
61
≥
RARC
EMDEs (ex China) China AEs
8.03
4.51
8.35 6.74 4.25
5.1
5.84
4.63
6.01
0.3
60
50
40
30
20
10
0
4 <
RL
6 <
RL
≤
4
8 <
RL
≤
6
01
<
RL
≤
8
01
≥
RL
4 <
RL
6 <
RL
≤
4
8 <
RL
≤
6
01
<
RL
≤
8
01
≥
RL
4 <
RL
6 <
RL
≤
4
8 <
RL
≤
6
01
<
RL
≤
8
01
≥
RL
EMDEs (ex China) China AEs
7.7
5.16
8.03
2.59
8.4 5.1
2.47
7.22
5.1
100
80
60 40
20
0
0.0
<
AOR
1 <
AOR
≤
0.0
0.2
<
AOR
≤
0.1
0.3
<
AOR
≤
0.2
0.3
≥
AOR
0.0
<
AOR
1 <
AOR
≤
0.0
0.2
<
AOR
≤
0.1
0.3
<
AOR
≤
0.2
0.3
≥
AOR
0.0
<
AOR
1 <
AOR
≤
0.0
0.2
<
AOR
≤
0.1
0.3
<
AOR
≤
0.2
0.3
≥
AOR
EMDEs (ex China) China AEs
9.67
7.7
4.51
2.59
8.4
9.04 8.13 3.72
100
80
60 40
20
0
05
<
RIC
06
=<RIC
=<
05
06>RIC 05
<
RIC
06
=<RIC
=<
05
06>RIC 05
<
RIC
06
=<RIC
=<
05
06>RIC
EMDEs (ex China) China AEsIII
DOMESTIC POLICY ENVIRONMENT
Monetary policy easing continued during 2025-26, with a neutral stance since June 2025, to strike
the right growth-inflation balance amid the evolving macro-financial conditions. The Reserve Bank
ensured comfortable system-level liquidity for smoother monetary policy transmission. The regulatory and
supervisory policies focused on reducing compliance burden through consolidation of regulatory instructions,
strengthening risk management, promoting harmonisation of prudential norms and addressing emerging
risks. Efforts toward enhancing financial inclusion, improving governance standards and transparency,
and promoting ease of doing business for regulated entities continued during the year.
Introduction entities (REs). These measures, in turn, helped
ensure financial stability and resilience in a
III.1 The Indian financial system remained
rapidly evolving global landscape.
resilient during 2024-25 and 2025-26, despite
formidable global headwinds, including III.2 Against this backdrop, the chapter
geopolitical risks, trade policy uncertainty provides an overview of the Reserve Bank’s
and financial market volatility. This resilience key policy initiatives across multiple domains.
was underpinned by a stable macroeconomic Section 2 outlines the major monetary and
environment, sound macroeconomic policies liquidity management measures undertaken
and an agile regulatory and supervisory during 2024-25 and 2025-26. Section 3 reviews
framework. The Reserve Bank remained key regulatory and supervisory initiatives
watchful of the emerging risks and challenges to undertaken by the Reserve Bank during the
the financial sector, while continuing to support period under review. The policy measures
financial innovation and digital transformation. related to technological innovations in the
Regulatory efforts were further reinforced financial sector are discussed in Section 4,
through a comprehensive set of measures followed by financial market developments in
including strengthening prudential norms, Section 5. Sections 6 and 7 examine initiatives
harmonising credit frameworks, improving aimed at strengthening consumer protection,
liquidity risk management, enhancing customer and measures to enhance credit delivery and
protection via transparency and fair lending promote financial inclusion, respectively.
practices, including through digital and co- Section 8 details the initiatives undertaken to
lending frameworks. Policy measures also enhance the scope and reach of the payments
focused on integrating climate-related financial system in a secure and inclusive manner.
risk management as well as leveraging technology Section 9 concludes the chapter with an overall
to bolster cyber-resilience of the regulated assessment.
27Report on Trend and Progress of Banking in India 2024-25
2. The Macroeconomic Policy Setting 2024 to deficit during December 2024-February
2025, returned to surplus by end-March 2025.
III.3 The Reserve Bank undertook a calibrated
During 2024-25, two-way fine-tuning operations
approach in the conduct of monetary policy
were the key mechanism to manage frictional
to support economic growth, as easing
liquidity.
inflationary pressures opened space for policy
accommodation. After keeping the policy repo III.6 Reflecting the comfortable liquidity
rate steady at 6.50 per cent through 2023-24 conditions, the weighted average call rate
to Q3:2024-25, the monetary policy committee (WACR) – the operating target of monetary
(MPC) reduced it by a cumulative 125 basis policy – remained broadly within the liquidity
points (bps) – 25 bps each in February and adjustment facility (LAF) corridor during 2024-
April 2025, followed by a 50 bps reduction in 25. Overnight rates in the collateralised segment
June 2025 and the latest 25 bps reduction in moved in tandem with the WACR. In other
December 2025 – to 5.25 per cent. segments of the money market, the average
daily spread of certificates of deposit (CD) and
III.4 In the backdrop of benign domestic
commercial paper (CP) rates over treasury
inflation outlook and moderate growth amidst
bill (T-bill) rates of corresponding maturity
global uncertainty, the MPC decided to change the
increased during 2024-25, mainly reflecting
policy stance from neutral to accommodative in
higher issuances of such instruments.
April 2025. Acknowledging the limited space to
further support growth amidst the fast-changing III.7 Government bond yields softened during
global economic situation, the MPC reverted to the year on the back of lower market borrowing
its neutral stance in June 2025 and maintained requirements by the central Government,
the stance thereafter, to strike the right growth- inclusion of Indian government securities in
inflation balance. Alongside, the Reserve Bank the global bond indices1, liquidity infusion by
provided sufficient liquidity to the banking the Reserve Bank, onset of domestic monetary
system – through open market purchases, USD/ policy easing cycle, and positive global cues from
INR Buy/Sell swaps and reduction in the cash easing US treasury yields. Corporate bond yields
reserve ratio (CRR) – to help improve monetary also eased tracking G-sec yields, albeit with a
policy transmission. widening of spread.
Developments during 2024-25 Developments during 2025-26
III.5 The Reserve Bank undertook a slew III.8 In the wake of evolving macro-financial
of liquidity enhancing measures in Q4:2024- conditions and increased global uncertainty,
25 including term repo auctions, open market the Reserve Bank continued providing sufficient
operation (OMO) purchases and USD/INR Buy/ liquidity to the banking system. Several measures
Sell swaps to inject durable liquidity into the taken by the Reserve Bank since December 2024
banking system. The system liquidity, which resulted in significant improvement in system
had turned from surplus during July-November liquidity during the year. To further ease liquidity
1 JP Morgan Government Bond Index-Emerging Markets in June 2024, Bloomberg Emerging Market Local Currency Government
Index in January 2025 and FTSE Russell Emerging Markets Government Bond Index in September 2025.
28DOMESTIC POLICY ENVIRONMENT
conditions and provide greater certainty to internal working group (IWG) and feedback from
the banking system, the Reserve Bank in June stakeholders. The overnight weighted average
2025 announced a reduction in the CRR by 100 call rate (WACR) remains the operating target of
bps, from 4.0 per cent to 3.0 per cent of net monetary policy, with continued monitoring of
demand and time liabilities (NDTL), which was other overnight money market rates to ensure
implemented in a staggered manner between orderly evolution and smooth transmission. The
September and November 2025.2 symmetric corridor system is retained, with the
policy repo rate at the center and the SDF and
III.9 Reflecting surplus liquidity, the WACR
MSF forming the floor and ceiling, respectively,
broadly hovered below the repo rate. After
at ±25 bps.
discontinuing the daily variable repo rate (VRR)
auctions since June 11, 2025, due to surplus III.11 To manage short-term/transient liquidity,
liquidity, variable rate reverse repo (VRRR) the 14-day VRR/VRRR operations were
operations of varying maturity (2 to 7 days)
discontinued as the main tool. This was replaced
commenced from June 27, 2025. They absorbed
primarily by 7-day VRR/VRRR operations, while
surplus liquidity and progressively aligned
other tenors (overnight to 14 days) will be
the WACR with the policy rate. The spread of
conducted at the Reserve Bank’s discretion.
WACR over the policy repo rate averaged (-)13
3. Regulatory and Supervisory Policies
bps during 2025-26 (up to December 18),
with overnight rates in collateralised segments III.12 The Reserve Bank of India recently
moving in tandem. Yields on 3-month T-bills, undertook a major exercise to consolidate
CDs, and CPs issued by non-banking financial all the banking/non-banking instructions
companies (NBFCs) moderated during 2025-26 issued to its regulated entities over several
(up to December 18), supported by comfortable decades. More than 9,000 instructions were
liquidity in the banking system and policy rate screened and consolidated into 244 function-
cuts. In the bond market, yields at the shorter wise Master Directions (including seven new
tenors declined significantly, while longer-end Master Directions on digital banking channel
bond yields softened to a lesser extent on account authorisation) organised across 11 types of REs
of global uncertainty and demand-supply including commercial banks, urban cooperative
mismatches. The transmission of the cumulative banks, non-banking financial companies, etc.
125 bps policy rate cut since February 2025 Following the consolidation, 9,445 circulars were
to banks’ deposit and lending rates continued repealed. This is expected to significantly improve
during the year. the accessibility of regulatory instructions for
the REs, thereby reducing their compliance cost,
Liquidity Management Framework
as well as improve the clarity on applicability of
III.10 The Reserve Bank finalised the revised each instruction to each type of entity. This also
liquidity management framework on September serves as a major push towards ease of doing
30, 2025, based on the recommendations of the business.
2 The reduction in the CRR announced on June 6, 2025, was carried out in four equal tranches of 25 bps each with effect from the
fortnights beginning September 6, October 4, November 1, and November 29, 2025.
29Report on Trend and Progress of Banking in India 2024-25
3.1 Credit Information Reporting calibrated standard asset provisioning starting
with 1 per cent for under-construction projects
III.13 The Reserve Bank issued the Master
(1.25 per cent for commercial real estate), which
Direction on Credit Information Reporting on
increases with each quarter of deferment. Overall,
January 6, 2025. The Directions established
a standardised framework for reporting and the framework seeks to support timely and
dissemination of credit information, while disciplined financing of project while adequately
safeguarding the confidentiality and security mitigating risks associated with execution delays
of sensitive credit data. It also provided in under-construction exposures.
mechanisms for consumers to access their credit
3.3 Review of Risk Weights on Microfinance
information and grievance redressal on related
Loans
matters. Subsequently, the Master Direction
III.16 The risk weight on consumer credit,
was withdrawn and the instructions contained
excluding housing, education, vehicle loans, and
therein for each RE were issued separately on
loans secured by gold, was increased to 125 per
November 28, 2025.
cent on November 16, 2023. Subsequently, on
III.14 In view of the increasing reliance of
February 25, 2025, the Reserve Bank revised
credit institutions (CIs) on credit information
the risk weight for microfinance loans, in the
reports (CIRs) in credit underwriting processes,
nature of consumer credit, to 100 per cent.
Amendment Directions were issued on December
Other microfinance loans fulfilling the qualifying
4, 2025 to ensure more frequent, accurate and
criteria of regulatory retail portfolio shall
timely reporting of credit information by CIs to
continue to attract a risk weight of 75 per cent,
credit information companies (CICs). subject to compliance with laid out policies
and procedures. Additionally, all microfinance
3.2 Project Finance
loans extended by regional rural banks (RRBs)
III.15 To establish a harmonised framework for
and local area banks (LABs) shall attract a risk
financing of projects in infrastructure and non-
weight of 100 per cent.
infrastructure (including commercial real estate
3.4 Exposures of Scheduled Commercial Banks
and commercial real estate-residential housing)
to Non-Banking Financial Companies
sectors by REs, the Reserve Bank issued the
III.17 To address the growing reliance of
Project Finance Directions on June 19, 2025,
NBFCs on scheduled commercial banks (SCBs)
which have subsequently been subsumed
for funding, the Reserve Bank, on November 16,
under the consolidated Directions issued on
2023, increased the applicable risk weights on
November 28, 2025. The Directions adopt a
SCBs’ exposures to NBFCs by 25 percentage
principle-based approach to resolution of stress
points in cases where the existing risk weight
with stronger risk safeguards, while balancing
based on external ratings was below 100 per
flexibility for lenders. Key measures include
cent. Following a review, on February 25, 2025,
rationalised timelines for extension of the date of
risk weights on bank lending to NBFCs were
commencement of commercial operations – up restored to the levels aligned with the respective
to three years for infrastructure projects and two external ratings, in cases where such ratings
years for non-infrastructure projects – along with prescribe a risk weight below 100 per cent.
30DOMESTIC POLICY ENVIRONMENT
3.5 Amendments to Liquidity Coverage Ratio with the involvement of third-party lending
Framework service providers (LSPs). To safeguard public
confidence, improve transparency and ensure
III.18 To address concomitant increase in
responsible conduct, the Reserve Bank issued
liquidity risks due to increased usage of
the Digital Lending Directions on May 8, 2025,
technology, strengthen banks’ short-term
consolidating all earlier regulatory instructions
liquidity resilience, and further align with
on digital lending (subsequently consolidated
global standards, the Reserve Bank revised the
under Directions on Credit Facilities issued on
Basel III liquidity coverage ratio (LCR) norms
November 28, 2025). The Directions introduced
to be effective from April 1, 2026. The revised
two new measures: (i) LSPs partnering with
guidelines, inter alia, prescribe additional 2.5
multiple REs must present loan offers in an
per cent run-off factor3 for retail deposits and
unbiased manner to allow borrowers to compare
unsecured wholesale funding from non-financial
them objectively to enhance borrower choice,
small business customers enabled with internet
ensure fair competition among lenders, and
and mobile banking, and that the market price
reduce the risk of biased product placement;
of government securities denominated as Level
and (ii) creation of a central directory of digital
1 high quality liquid assets would be adjusted
lending apps to help borrowers verify their
for applicable haircuts in line with the margin
legitimacy and association with REs and curb
requirements under the LAF and marginal
fraudulent practices.
standing facility (MSF). The guidelines clarified
3.7 Lending Against Gold and Silver Collateral
that other legal entities category, where 100 per
cent run-off rate applies, shall include deposits III.20 In order to address prudential and
and other funding from banks/insurance conduct-related gaps across REs and move
companies and financial institutions, and towards a principle-based and harmonised
entities in the business of financial services, framework, the Reserve Bank issued the Lending
while non-financial corporates (eligible for 40 Against Gold and Silver Collateral Directions on
per cent run-off rate) shall also include trusts, June 6, 2025. For improving credit availability
partnerships, limited liability partnerships, and to borrowers requiring small value loans, the
association of persons. regulatory ceilings on loan-to-value (LTV) ratio
for consumption loans against gold and silver
3.6 Digital Lending
collaterals were recalibrated. The previous LTV
III.19 Digital lending has emerged as a key ceiling of 75 per cent was increased to 85 per
innovation in India’s financial system. At the cent for loans up to ₹2.5 lakh, and to 80 per
same time, its rapid growth has led to concerns cent for loans above ₹2.5 lakh but up to ₹5 lakh,
such as mis-selling, data-privacy breaches, while retaining the earlier limit of 75 per cent
unfair practices, opaque interest rates and fees, for loans above ₹5 lakh. The specific limits on
and unethical recovery methods, especially amount of bullet repayment of loans against
3 The runoff factor represents the estimated percentage of deposits a bank expects to be withdrawn or transferred during a period of
stress.
31Report on Trend and Progress of Banking in India 2024-25
gold collateral earlier applicable to co-operative due date, and at least three reminders after the
banks and RRBs were removed. due date, with easy to understand instructions
for updating KYC, escalation options for seeking
III.21 To support borrowers engaged in
help and consequences of non-compliance,
industries using gold as input and to widen access
ensuring all communications are recorded, with
to credit, the Reserve Bank amended the Lending
Against Gold and Silver Collateral Directions on implementation required by January 1, 2026.
September 29, 2025. While banks are generally Banks are advised to organise camps and launch
prohibited from lending for purchase of gold or intensive campaigns, particularly in rural and
lending against the collateral of primary gold/ semi-urban branches to clear the large pendency
silver, earlier guidelines permitted SCBs to grant in periodic updation of KYC accounts.
need-based working capital loans to jewellers.
III.23 To ease the process for customers,
The Reserve Bank has extended the permission
especially those with direct benefit transfers
further to Tier 3 and 4 UCBs to provide need-
(DBT)/electronic benefit transfer (EBT),
based working capital finance to borrowers
Pradhan Mantri Jan-Dhan Yojana (PMJDY),
who use gold or silver as a raw material, or as
and scholarship accounts, the Reserve Bank
an input in their manufacturing or industrial
amended instructions on updation/periodic
processing activity.
updation of KYC on June 12, 2025. The revised
3.8 Know Your Customer Amendments
framework allows BCs to assist in KYC updation,
III.22 In order to further ease the process of in addition to existing options such as Aadhaar
know your customer (KYC) updation for the OTP, DigiLocker, video customer identification
customers, the Reserve Bank amended the KYC process (V-CIP), and self-declarations through
Directions on June 12, 2025. In respect of an digital and non-digital channels.
individual customer, who is categorised as low
III.24 To further enhance accessibility,
risk, the RE shall allow all transactions and
inclusivity, and clarity in KYC compliance, the
ensure the updation of KYC within one year of its
Reserve Bank issued amendments to the KYC
due date for KYC or by June 30, 2026, whichever
Directions again in August 2025. The key changes
is later. Accounts of such customers shall be
include: (i) REs to ensure that onboarding or KYC
subjected to regular monitoring. Banks are
updation applications are not rejected without
allowed to use business correspondents (BCs)
due consideration and reasons for rejection are
to obtain self-declarations from the customers
duly recorded; (ii) extending the reliance on
in case of no change in KYC or change only in
customer due diligence done by a third party
the address details, either electronically after
biometric e-KYC authentication or in physical for occasional transactions of ₹50,000 or more
form until electronic options are available, with and any international money transfers; (iii)
BCs providing acknowledgment and banks mentioning Aadhaar Face Authentication as one
retaining ultimate responsibility. Additionally, of the modes of Aadhaar e-KYC authentication;
the REs must send at least three advance and (iv) ensuring liveness checks during V-CIP
notices, including one by letter, before the KYC shall not exclude persons with special needs.
32DOMESTIC POLICY ENVIRONMENT
3.9 Inoperative Accounts/ Unclaimed Deposits no pre-payment charges on loans granted by
in Banks specified categories of REs for business purposes
to individuals and MSEs subject to the threshold
III.25 The Reserve Bank amended its
limit (e.g., loans up to ₹50 lakh for small finance
instructions on inoperative accounts and
banks (SFBs), RRBs, rural co-operative banks
unclaimed deposits on June 12, 2025. Banks
(RCBs), NBFCs-Middle Layer and Tier 3 urban
must now allow customers to update KYC for
co-operative banks (UCBs)).
reactivating such accounts at all branches
3.11 Investment in Alternative Investment
(including non-home branches), and also provide
Fund
the option of video KYC (V-CIP). Banks may use
authorised BCs to facilitate KYC updation for III.28 To update and streamline regulatory
activation of these accounts. guidelines for investments by REs in alternative
investment funds (AIFs), the Reserve Bank
III.26 To further the objective of reducing the
issued Directions on July 29, 2025. Key
stock of unclaimed deposits and fresh accretion
provisions of the directions include: (i) individual
to the Depositor Education and Awareness
RE contributions to an AIF scheme cannot
(DEA) Fund, the Reserve Bank, on September
exceed 10 per cent of its corpus, and collective
30, 2025, launched the Scheme for Facilitating
contributions by all REs shall not exceed 20
Accelerated Payout – Inoperative Accounts and
per cent; (ii) if an RE invests over five per cent
Unclaimed Deposits, for a period of one year from
in an AIF scheme that has downstream non-
October 1, 2025 to September 30, 2026. During
equity exposure to the RE’s debtor company,
this period, banks will be eligible for differential
it must make 100 per cent provisioning for
pay-out based on period of inoperativeness of
the proportionate exposure, capped at the
account and amount of unclaimed deposits,
direct exposure amount; and (iii) if the RE’s
for the inoperative accounts reactivated and
contribution is in the form of subordinated units,
unclaimed deposits paid to rightful claimants.
the entire investment must be deducted from its
3.10 Pre-payment Charges on Loans capital funds, proportionately from both Tier 1
and Tier 2 capital, wherever applicable.
III.27 To ensure affordable and transparent
financing for micro and small enterprises 3.12 Co-Lending Arrangements
(MSEs) and prevent divergent practices and
III.29 In order to provide a clear regulatory
restrictive clauses by REs that cause customer
framework and broaden the scope of co-
grievances, the Reserve Bank issued the Pre-
lending arrangements (CLAs) between REs,
payment Charges on Loans Directions, 2025 on
the Reserve Bank issued the Co-Lending
July 2, 2025, to be applicable in case of loans Arrangements Directions on August 6, 2025.
and advances sanctioned or renewed on or after These Directions, effective January 1, 2026, aim
January 1, 2026. Under these Directions, the to ensure prudential and conduct standards,
REs shall, inter alia, adhere to the following transparency, and operational clarity. Key
Directions for floating rate loans and advances: measures include: (i) expanding the co-lending
(i) no pre-payment charges on loans granted to framework to all loans – priority sector lending
individuals for non-business purposes; and (ii) (PSL) or otherwise; (ii) reducing minimum loan
33Report on Trend and Progress of Banking in India 2024-25
retention by the originating lender from 20 per drafting, amending, and reviewing regulations
cent to 10 per cent; (iii) permitting default loss by the Reserve Bank. Key processes include: (i)
guarantee cover up to 5 per cent of outstanding public consultation through issuance of a draft
loans; and (iv) mandating transfer of loan and a statement of particulars highlighting, inter
exposures within 15 days to avoid regulatory alia, the objective of the regulation; (ii) impact
arbitrage. The Directions also strengthen analysis (to the extent feasible); (iii) issuance
borrower safeguards and market discipline.
of general statement of response to the public
Collectively, these measures aim to encourage
comments received; and (iv) periodic review
growth of the co-lending market while improving
taking into account aspects such as the stated
underwriting standards, ensuring transparency,
objectives, experience gained, relevance in a
and preventing misuse of co-lending structures.
changed environment and the scope for reducing
3.13 Non-Fund Based Credit Facilities redundancies.
III.30 To harmonise and consolidate guidelines 3.15 Nomination Facility Directions
on non-fund based (NFB) credit facilities such as
III.32 To align the regulatory instructions on
guarantees, letters of credit, and co-acceptances
nomination facility with amendments in the
as well as to broaden funding sources for
Banking Regulation Act, 1949 and Nomination
infrastructure financing, the Reserve Bank
Rules, the Reserve Bank issued Nomination
issued the Directions on Non-Fund Based Credit
Facility in Deposit Accounts, Safe Deposit
Facilities on August 6, 2025. This framework
Lockers and Articles kept in Safe Custody with
explicitly recognises electronic guarantees and
the Banks Directions on October 28, 2025. Under
also introduces prudential safeguards, including
these Directions, all banks are required to offer
specific limits on the issuance of guarantees by
nomination facility and must inform customers
co-operative banks, RRBs and LABs. Key changes
about the facility, record and acknowledge
with regard to partial credit enhancement (PCE)
nominations after due verification within three
guidelines include expansion of scope and
working days of receiving the application form,
rationalisation of the capital requirements for
and display “Nomination Registered” with
PCE to balance prudential oversight with market
nominee details in passbooks /statement of
development.
account /term deposit receipt.
3.14 Framework for Formulation of
3.16 Settlement of Claims in Respect of
Regulations
Deceased Customers of Banks
III.31 To ensure that the formulation and
amendment of regulations4 follow a transparent, III.33 To reduce distress and inconvenience
consultative, and standardised approach, faced by the families of deceased customers
the Reserve Bank issued Framework for and to simplify procedures for settlement of
Formulation of Regulations on May 7, 2025. claims, the Reserve Bank issued Settlement of
The framework establishes broad principles for Claims in respect of Deceased Customers of
4 For the purpose of this Framework, “Regulations” include all regulations, directions, guidelines, notifications, orders, policies,
specifications, and standards as issued by the Bank in exercise of the powers conferred on it by or under the provisions of the Acts
and Rules.
34DOMESTIC POLICY ENVIRONMENT
Banks Directions on September 26, 2025. For of Directors comprising at least two independent
accounts with a valid nomination or survivorship directors; and (iii) settlement of accounts having
clause, banks shall pay balances directly to the aggregate outstanding value of less than ₹1 crore
nominee or survivor without requiring legal shall be done as per the Board approved policy,
documentation such as Succession Certificates, subject to the condition that any official who
Letter of Administration, Probate of Will, was part of the acquisition of the concerned
provided identity of the nominee /survivor and financial asset shall not be part of processing/
deceased status of the customer are verified approving the OTS proposal of the same financial
and no court order restrains the bank from asset.
making or nominee /survivor from receiving
3.18 Interest Rate on Advances
the payment. For accounts without nominee /
III.35 To benefit the borrowers, while providing
survivorship clause, banks shall set a threshold
greater flexibility to the lenders, the Reserve
limit as prescribed in the circular or a higher
Bank revised the framework governing floating
limit as may be decided by them for settlement
rate loans vide amendment to the Interest Rate
of claim. Further, documents as prescribed in
on Advances Directions on September 29, 2025.
the circular shall be obtained instead of being
left to the discretion of the banks. Access to safe Previously, while floating rate retail and micro,
deposit lockers and articles kept in safe custody small and medium enterprise (MSME) loans
follows similar simplified rules. Banks must were benchmarked to an external benchmark,
settle claims within 15 calendar days otherwise banks could alter the spread components (other
compensation shall be paid to the claimant. than credit risk premium) in such interest
rates only once in three years. Further, the REs
3.17 Guidelines on Settlement of Dues of
were mandated to offer borrowers the option
Borrowers by Asset Reconstruction Companies
to switch to fixed rates in respect of equated
III.34 A comprehensive review of the extant monthly instalments (EMI) based personal
guidelines applicable to one-time settlement
loans at the time of reset of interest rates. The
(OTS) of dues by asset reconstruction
amendment allows banks to reduce the other
companies (ARCs) was undertaken and revised
spread components earlier than three years for
guidelines were issued on January 20, 2025.
customer retention, on justifiable grounds, in a
These guidelines, inter alia, prescribe that: (i)
non-discriminatory manner, and in terms of the
settlement should be done with the borrower
bank’s policy. Further, REs may, at their option,
after all possible ways to recover the dues
provide a choice to the borrowers to switch over
have been examined and OTS is considered to
to a fixed rate at the time of reset, as per their
be the best option available; (ii) settlement of
Board approved policy.
accounts having aggregate outstanding value of
3.19 Basel III Capital Regulations – Additional
more than ₹1 crore as well as of all accounts of
Tier 1 Capital Perpetual Debt Instruments
borrowers classified as fraud or wilful defaulter
Limit
should be done after the proposal is examined
by an independent advisory committee (IAC) of III.36 To provide greater headroom to banks
professionals followed by a review by the Board for augmenting their Tier 1 capital via overseas
35Report on Trend and Progress of Banking in India 2024-25
markets, the Reserve Bank revised the existing their own group shall be reckoned under ITEs.
eligible limit applicable to perpetual debt Further, exposures of Indian branches of foreign
instruments denominated in foreign currency/ banks to their Head Office shall be reckoned
rupee denominated bonds on September 29, under LEF and such exposures, centrally
2025. cleared or otherwise shall be considered on a
gross basis; (ii) extension in the scope of credit
3.20 Gold Metal Loans
risk mitigation (CRM) benefit for all exposures
III.37 With a view to harmonising the extant
of foreign bank branches to their Head Office;
Gold Metal Loan (GML) scheme, across eligible
(iii) alignment of ITE computation with LEF by
borrower segments, and providing more
permitting use of credit conversion factors and
operational freedom to banks, the Reserve Bank
CRM offsets; and (iv) linking the ITE threshold
has issued a comprehensive and principle-based
to Tier 1 capital instead of paid-up capital and
regulations on GML on December 04, 20255 after
reserves.
the requisite public discussion. The key changes
3.22 Digital Banking Channels Authorisation
include: (i) permitting a bank to fix repayment
tenor for GML to jewellers (other than jewellery III.39 Recognising the growing importance of
exporters) as per its policy, in alignment with internet and mobile banking services and to
working capital cycle of the jeweller, subject to a facilitate the growth of digital banking services,
ceiling of 270 days (revised from the existing 180 a consolidated and updated framework for
days); and (ii) expanding eligibility by permitting launching Digital Banking Channels for REs was
GML to jewellers who are not manufacturers issued on November 28, 2025.
themselves but outsource their manufacturing
3.23 Instructions on the Forms of Business
of jewellery on job basis to manufacturing firms
and Investments by Banks
/artisans / goldsmiths.
III.40 Keeping in view the need to ring fence
3.21 Large Exposures Framework and Intra-
banks from risk bearing activities as well as
group Transactions and Exposures
to have a streamlined bank group structure,
III.38 In order to clarify prudential treatment of final instructions on the Forms of Business and
exposures of foreign bank branches in India to Investments by Banks were issued on December
their head offices and other group entities, as 5, 2025. The key provisions include: (i) insertion
also to harmonise certain norms under the large of the principle that each line of business shall
exposures framework (LEF) and intra-group preferably be carried out by a single entity in the
transactions and exposures (ITE), the Reserve bank group; (ii) prescription of specific conditions
Bank on December 4, 2025 issued Commercial for group entities of banks undertaking lending
Banks – Concentration Risk Management business; (iii) requirement of framework for
Amendment Directions. The key changes group-wide capital planning and allocation by
include: (i) exposures of Indian branches of banks; (iv) relaxation in general permission limit
foreign banks to distinct legal entities within for undertaking investment in an entity by the
5 Reserve Bank of India (Commercial Banks - Credit Facilities) Amendment Directions, 2025 and Reserve Bank of India (Small
Finance Banks - Credit Facilities) Amendment Directions, 2025.
36DOMESTIC POLICY ENVIRONMENT
bank group (with or without investment by the their funding requirements. Upon a review,
bank); and (v) limiting sponsorship of a bank for considering, inter alia, the changes evident in
ARCs to one ARC, with aggregate shareholding the profile of bank funding to the corporate
of a bank group in an ARC restricted to less than
sector since the introduction of the guidelines,
20 per cent.
it was proposed to withdraw the guidelines
3.24 Transaction Account Directions on October 1, 2025. After examination of the
stakeholder’s feedback, it was decided to repeal
III.41 In order to enforce credit discipline
the extant instructions on Market Mechanism
among borrowers as well as to facilitate better
Framework on December 4, 2025. While
monitoring by lenders, restrictions were placed
the Large Exposures Framework addresses
on the operation of transaction accounts6, for
concentration risk at an individual bank-level,
ensuring that cashflows of borrowers are routed
concentration risk at the banking system level
through the lending bank(s). The instructions
were reviewed to rationalise and simplify the will be monitored and managed as part of
restrictions while maintaining their underlying financial stability surveillance.
intent. Final guidelines were issued by the
Non-Banking Financial Companies
Reserve Bank in this regard on December 11,
3.26 Review of Qualifying Assets Criteria
2025. As cash credit account is primarily a
for Non-Banking Financial Companies –
working capital facility, no restrictions are
Microfinance Institutions
placed on such accounts. Further, banks having
minimum 10 per cent share either in banking III.43 Based on recent developments in
the microfinance sector, feedback from the
system’s aggregate exposure to the borrower;
industry, and to allow non-banking financial
or in banking system’s aggregate fund-based
companies – microfinance institutions (NBFC-
exposure to the borrower7 can maintain current
MFIs) to diversify their assets into relatively less
accounts and overdraft accounts without
vulnerable sectors, the Reserve Bank revised
restrictions.
the qualifying asset (QA) criteria for NBFC-MFIs
3.25 Withdrawal of Guidelines on Enhancing
from the earlier prescription of 75 per cent of
Credit Supply for Large Borrowers through
total assets to 60 per cent of total assets (netted
Market Mechanism
off by intangible assets) on June 6, 2025.
III.42 The Guidelines on Enhancing Credit
Co-operative Banks
Supply for Large Borrowers through Market
3.27 Review and Rationalisation of Prudential
Mechanism were introduced in August 2016
Norms of Urban Co-operative Banks
with an objective to address the concentration
risk arising from the aggregate credit exposure III.44 With a view to enhancing the credit flow
of the banking system to a single large corporate to individual housing loans while balancing the
and encourage such large corporates to diversify exposures to riskier real estates, prudential
6 Current accounts, cash credit accounts and overdraft accounts are collectively referred to as transaction accounts.
7 These conditions are applicable for customers to whom the exposure of the banking system is ₹10 crore or more, while in case of
less than ₹10 crore aggregate exposure, bank can maintain current account or overdraft account without any restrictions.
37Report on Trend and Progress of Banking in India 2024-25
limits and reference parameter of UCBs’ loans eligibility criteria for business authorisation
to real estate exposures were rationalised on (ECBA) and same was extended to RCBs as well.
February 24, 2025. The prudential ceilings on Accordingly, banks are required to maintain a
a UCB’s aggregate exposures to ‘non-priority capital to risk weighted assets ratio (CRAR) of at
sector housing loans to individuals’, and ‘real least one percentage point above the regulatory
estate sector – excluding housing loans to minimum, net non-performing assets (NPAs) of
individuals’ were revised to 25 per cent and not more than 3 per cent and net profits during
5 per cent, respectively, of its total loans and the preceding two financial years, adhere to CRR/
advances from the previous aggregate ceiling statutory liquidity ratio (SLR) prescriptions,
of 10 per cent of total assets for all real estate and implement core banking solution (CBS) and
exposures. No aggregate exposure limit is governance standards.
prescribed for housing loans to individuals
III.46 UCBs are categorised into four tiers
eligible to be classified as priority sector. The
based on deposit size, with higher tiers subject
limits on quantum of individual housing loans
to stricter prudential norms. Large UCBs in Tier
offered by Tier 3 and Tier 4 UCBs were enhanced
3 and 4, with minimum assessed net worth of
to ₹2 crore and ₹3 crore, respectively, from the
₹50 crore and ECBA compliance, were allowed
previous limit of ₹1.40 crore. The capital-linked
to expand their operations beyond their state,
monetary ceiling for a small value loan of a UCB
that is, up to two states per year subject to
was also increased from 0.2 per cent to 0.4 per
Reserve Bank’s approval along with sufficient
cent of its Tier 1 capital, while simultaneously
headroom capital for at least five branches in
increasing the static cap on such loans from ₹1
each proposed state. Further, each UCB was
crore to ₹3 crore. It will be pertinent to mention
allowed to extend to whole of its district and
that UCBs are required to have at least 50 per
extend to up to three additional districts within
cent of their aggregate loans and advances
the state of registration if ECBA-compliant,
comprising of small value loans by March 31,
without prior approval.
2026.
3.29 Climate Change Risks
3.28 Business Authorisation for Co-operative
Banks III.47 The regulatory landscape for climate
III.45 To harmonise the framework for change risks is evolving considering the global
authorisation, regulation, and reporting of developments as well as the maturity of the
business activities of UCBs, state co-operative domestic ecosystem. In this regard, the Reserve
banks (StCBs), and district central co-operative Bank is following a building block approach,
banks (DCCBs), the Reserve Bank issued the focusing on development of specific capacities
Urban Cooperative Banks – Branch Authorisation and technical expertise in the REs. Towards
Directions, 2025 and Rural Cooperative Banks this end, extensive stakeholder discussions and
– Branch Authorisation Directions, 2025 on capacity building initiatives were carried out
December 4, 2025. The Directions replaced over the year, which also included sensitising
the earlier financially sound and well managed the board members and top management of the
(FSWM) criteria applicable to UCBs with new REs. The work regarding the operationalisation
38DOMESTIC POLICY ENVIRONMENT
of Reserve Bank – Climate Risk Information the FREE-AI Committee conducted surveys,
System (RB-CRIS)8 is underway. stakeholder consultations, and developed seven
Sutras – Trust, People First, Innovation over
4. Technological Innovations
Restraint, Accountability, Fairness & Equity,
III.48 The Reserve Bank introduced a series
Understandable by Design, and Safety, Resilience
of technological advancements during the
& Sustainability – serving as core principles.
review period to strengthen and modernise the
III.50 The Framework promotes innovation
financial system. Key measures included: (i) the
through three pillars — Infrastructure, Policy, and
release of the framework for responsible and
Capacity — including initiatives such as shared
ethical enablement of artificial intelligence (AI)
financial sector data platforms, AI innovation
to promote safe and transparent adoption of
sandboxes, indigenous sector-specific AI models,
artificial intelligence in financial services; (ii) the
integration with digital public infrastructure
rollout of PRAVAAH, a unified web-based portal
(DPI), funding support, and capacity-building
digitising all regulatory applications; and (iii)
programmes for both REs and the regulators.
the introduction of exclusive internet domains
To mitigate risks, it establishes governance,
like .bank.in and .fin.in to curb cyber fraud.
protection, and assurance measures: Board-
Further, in order to strengthen the minimum
approved AI policies, data lifecycle and model
two factor authentication framework and
governance, AI-specific product approvals,
encourage innovation, the Reserve Bank issued
cybersecurity, red-teaming, business continuity
a principle-based authentication framework,
planning, incident reporting, AI inventories,
which will come into effect from April 1, 2026.
audits, and public disclosures.
Together, these efforts reflect the Reserve Bank’s
III.51 Two distinct surveys conducted by the
commitment to fostering a secure, seamless, and
Reserve Bank revealed limited AI adoption among
inclusive digital economy in India.
smaller UCBs, NBFCs, and ARCs, primarily
4.1 Framework for Responsible and Ethical using simple rule-based or moderately complex
Enablement of AI machine learning (ML) models, with larger
banks exploring early-stage AI applications.
III.49 The Reserve Bank released the Framework
Adoption barriers include high costs, talent
for Responsible and Ethical Enablement of
gaps, insufficient data, and supportive
AI (FREE-AI) on August 13, 2025, outlining a
infrastructure, while inclusion-oriented use
comprehensive approach to foster responsible
cases show potential in alternate credit scoring,
and ethical adoption of AI in financial services,
multilingual chatbots, automated KYC and agent
balancing innovation with risk mitigation. AI
banking.
is recognised as a transformative technology,
offering benefits in financial inclusion, efficiency, 4.2 Platform for Regulatory Application,
and customer service, while posing risks Validation and AutHorisation (PRAVAAH)
like bias, opacity, cybersecurity threats, and III.52 PRAVAAH, a secure, centralised web-
data privacy concerns. To guide AI adoption, based portal for digitising the submission
8 To bridge climate-related data gaps and enable comprehensive climate risk assessments by the REs, RBI announced creation of a
data repository, viz., Reserve Bank – Climate Risk Information System (RB-CRIS) in October 2024.
39Report on Trend and Progress of Banking in India 2024-25
and processing of applications, requests and one of the factors of authentication is dynamically
references from REs and individuals was created or proven. It emphasises robustness,
successfully launched on May 28, 2024, to ensure interoperability, and risk-based checks, while
seamless and faster delivery of services in a making issuers fully liable for customer losses
transparent manner. It is integrated with Sarthi, in case of non-compliance. It also mandates
the internal workflow application of the Reserve
compliance with the Digital Personal Data
Bank, thereby ensuring end-to-end digitisation
Protection Act, 2023 and introduces mechanisms
of the entire processing lifecycle of applications.
for validating cross-border card-not-present
PRAVAAH has facilitated ease of doing business
transactions, thereby enhancing both security
for the REs and individuals. The Reserve Bank
and trust in digital transactions.
had mandated that from May 1, 2025, all
5. Financial Markets
REs must submit applications for regulatory
authorisations, licenses, and approvals III.55 Financial markets in India play a pivotal
exclusively through the PRAVAAH portal. As on role in the country’s economic development by
December 18, 2025, forms pertaining to 191 facilitating efficient mobilisation and allocation
services are available in PRAVAAH. of capital. By providing avenues for investment
and liquidity, financial markets contribute to
4.3 Exclusive Internet Domains –.bank.in and
price discovery, risk management, and long-term
.fin.in
capital formation. Furthermore, they support
III.53 To combat the rising instances of fraud in
economic growth by encouraging savings,
digital payments, an exclusive internet domain
enhancing financial inclusion, and enabling
for Indian banks in the form of ‘.bank.in’ was businesses to raise funds for expansion. As India
introduced on April 22, 2025, with a proposal continues to liberalise and digitalise its financial
to later extend it to non-bank entities in the ecosystem, the significance of well-regulated and
financial sector through ‘.fin.in’. These domains deep financial markets becomes increasingly
aim to help customers identify legitimate bank central to sustaining inclusive and resilient
websites and reduce the risk of phishing and economic progress. In this direction, the Reserve
other cyberattacks. As of December 1, 2025, 638 Bank has continued to advance efforts to deepen
banks have initiated the process of obtaining the and develop financial markets by simplifying
domain, of which 479 banks have migrated to regulations and encouraging innovations.
the ‘.bank.in’ domain.
5.1 Repurchase Transactions (Repo) Directions
4.4 Authentication Mechanisms for Digital
III.56 The extant directions on repo transactions
Payment Transactions
included government securities issued by
III.54 To strengthen the safety and resilience the central and state Governments, listed
of India’s growing digital payments ecosystem, corporate bond and debentures, commercial
the Reserve Bank issued the Authentication papers, certificate of deposits and units of
Mechanisms for Digital Payment Transactions debt ETFs as eligible securities. On a review,
Directions on September 25, 2025. Effective municipal debt securities have been included as
April 1, 2026, the Directions require that at least eligible securities for repo transactions. This
40DOMESTIC POLICY ENVIRONMENT
would help improve the liquidity of such NDS-OM subject to the regulations and
securities and provide a fillip to the market conditions laid down by the Reserve Bank in this
for municipal bonds while also adding to the regard.
suite of instruments available for the repo and
5.4 Introduction of Forward Contracts in
reverse repo markets.
Government Securities
5.2 Review of the Regulatory Framework for
III.59 To enable long-term investors such as
Electronic Trading Platforms
insurance funds to manage their interest rate
III.57 Strengthening the regulatory framework risk across interest rate cycles, forward contracts
for electronic trading platforms, the Master in government securities have been introduced,
Directions on Electronic Trading Platforms, which will also facilitate efficient pricing of
issued on June 16, 2025, replaced the 2018 derivatives that use bonds as underlying
framework facilitating transactions in eligible instruments.
instruments like securities, money market
5.5 Investments by Foreign Portfolio Investors
instruments, foreign exchange instruments, and
in Corporate Debt Securities through the
derivatives, on any electronic system excluding
General Route – Relaxations
recognised stock exchanges. The framework
III.60 To provide greater ease of investment to
prescribes detailed requirements for operations,
foreign portfolio investors (FPIs), the Reserve
risk management, and compliance, including
Bank, on May 8, 2025, announced relaxations for
fair access rules, due diligence in onboarding,
FPIs investing in corporate debt securities under
transparent pre-trade and post-trade disclosures,
the General Route. Specifically, the requirement
dispute resolution, surveillance, information
to adhere to the short-term investment limit and
security, annual information technology (IT)/
the concentration limit in debt instruments, has
information systems (IS) audits, business
been withdrawn with immediate effect.
continuity planning, and strict data preservation
norms. The framework also streamlines 5.6 Extension of Market Timings for Money
authorisation, adapts to emerging technologies Market Segments
like algorithmic trading, and balances regulatory
III.61 With a view to facilitating market
oversight with operational flexibility for exempt
development, enhancing price discovery, and
entities.
optimising liquidity requirements, the Reserve
5.3 Access of SEBI-registered Non-bank
Bank announced changes in the market timings
Brokers to Negotiated Dealing System-Order
of both the collateralised and uncollateralised
Matching
segments of the money market. The market
III.58 With a view to widening access, non-bank trading timings for call money transactions have
brokers registered with SEBI have been granted been extended from 5:00 PM to 7:00 PM with
direct access to Negotiated Dealing System- effect from July 1, 2025, and for market repo
Order Matching (NDS-OM) for secondary and triparty repo (TREP) transactions, from
market transactions in government securities on 2:30 PM/3:00 PM to 4:00 PM with effect from
behalf of their clients. These brokers may access August 1, 2025.
41Report on Trend and Progress of Banking in India 2024-25
6. Consumer Protection 7. Credit Delivery and Financial Inclusion
III.62 The Reserve Bank’s customer III.64 The Reserve Bank has consistently
protection policies reinforced its commitment recognised that meaningful financial inclusion
to safeguarding consumer rights, improving requires both access and awareness.
service quality, enhancing awareness, and Accordingly, the Reserve Bank has undertaken
ensuring robust grievance redressal, with focus several financial literacy initiatives to strengthen
on combating emerging digital frauds. For the demand side of inclusion. These include
consumer awareness, the Reserve Bank has financial literacy camps conducted through
been undertaking several initiatives including Centres for Financial Literacy (CFLs) and the
conducting town-hall meetings and awareness development and periodic updating of financial
programmes, with a focus on specific groups literacy content by the National Centre for
such as students, senior citizens and women, and Financial Education (NCFE), set up jointly
distributing awareness booklets to the trainees by financial sector regulators. By promoting
of Rural Self Employment Training Institutes awareness alongside access, these initiatives
(RSETIs) through their sponsor banks. aim to ensure responsible and equitable use
of financial services, thereby reinforcing the
6.1 Institutional Safeguards against Voice and
broader financial inclusion agenda.
SMS Financial Frauds
7.1 Voluntary Pledge of Gold and Silver –
III.63 To prevent financial frauds using
Agriculture and MSME Loans
voice calls and SMS, the Reserve Bank issued
guidelines on January 17, 2025, directing all III.65 The Reserve Bank, on December 6, 2024,
REs to strengthen safeguards against misuse of announced an increase in the limit for collateral-
customer mobile numbers in frauds. REs were free agriculture loans from ₹1.6 lakh to ₹2 lakh
advised to utilise the mobile number revocation per borrower to enhance credit availability
list on the Digital Intelligence Platform (DIP) of for small and marginal farmers. Further, to
the Department of Telecommunications (DoT) to offer greater flexibility to farmers seeking to
monitor and clean customer databases. REs were improve their credit worthiness by utilising
required to develop standard operating procedure their available assets, it was clarified on July 11,
(SOP) to, inter alia, verify and update registered 2025 that the voluntary pledge of gold and silver
mobile numbers, and enhance monitoring of as collateral for agriculture and MSME loans up
accounts linked to revoked numbers to prevent to the collateral-free limit will not be considered
fraudulent activities. REs were also advised to a breach of the guidelines on collateral-free
share their verified customer care numbers lending to the agriculture and MSME sectors.
to DIP to be published on “Sanchar Saathi”
7.2 Priority Sector Lending
Portal, to use only ‘1600xx’ numbering series
to undertake service/transactional calls and III.66 The Reserve Bank released revised priority
‘140xx’ numbering series for promotional calls, sector lending (PSL) guidelines, effective from
follow Telecom Regulatory Authority of India April 1, 2025, following a comprehensive review
(TRAI) commercial communication guidelines, and stakeholder consultation. Key changes
and undertake extensive awareness measures. include enhanced loan limits across several
42DOMESTIC POLICY ENVIRONMENT
categories — particularly housing — to expand operators, beneficiary name verification for
PSL coverage, broader eligibility for loans under real-time gross settlement (RTGS) and national
the ‘Renewable Energy’ segment, and a revised electronic funds transfer (NEFT), continuous
overall PSL target of 60 per cent of adjusted net cheque clearing and UPI access for full-KYC
bank credit (ANBC) or credit equivalent of off- prepaid payment instruments through third-
balance sheet exposures (CEOBSE) (whichever party applications. As a part of efforts to address
is higher) for UCBs. Additionally, the guidelines the challenges of high cost, slow speed, and
expand the list of eligible borrowers under the insufficient access and transparency in cross-
‘Weaker Sections’ category and remove the cap border payments, the global reach of UPI is being
on loans extended by UCBs to individual women expanded through bilateral and multilateral
beneficiaries. These revisions aim to improve linkages for cross-border remittances, Quick
the targeting and flow of bank credit to critical
Response (QR) code based acceptance of UPI at
sectors of the economy.
merchant locations abroad and collaboration
III.67 The Reserve Bank revised the PSL norms with partner jurisdictions to deploy UPI-like
for small finance banks (SFBs), to be effective sovereign payment systems. Further, RuPay
from financial year 2025-26. Under the new technology stack is also offered to other
framework, the overall PSL obligation for SFBs is countries for development of their sovereign
reduced from 75 per cent to 60 per cent of ANBC domestic card scheme. These sustained efforts
or CEOBSE, whichever is higher. The SFBs shall reflect a strategic vision of building an integrated,
continue to allocate 40 percent of its ANBC or resilient, and globally connected digital payments
CEOBSE, whichever is higher, to different sub- ecosystem.
sectors under PSL, such as agriculture, MSMEs,
8.1 Regulation of Payment Aggregator
housing, and weaker sections etc., as per the
III.69 To enhance governance, transparency,
extant PSL prescriptions. The remaining 20 per
and security of payment aggregators, the Reserve
cent, replaces the earlier 35 per cent flexible
Bank issued the Master Direction on Regulation
allocation, which can be allocated to any PSL
of Payment Aggregators (PAs) on September 15,
categories where the bank has a competitive
2025. This consolidates prior guidelines on PA
edge.
and cross-border operations and establishes
8. Payment and Settlement Systems
a comprehensive regulatory framework for all
III.68 The Reserve Bank has been at the forefront bank and non-bank entities engaged in payment
of enhancing the payment and settlement aggregation in India. It establishes a rigorous
system through technology-driven innovations, authorisation process with eligibility criteria,
accessibility measures, and global outreach minimum capital, governance standards, and
initiatives. The Reserve Bank strengthened digital fit-and-proper tests to allow only credible and
payment security and efficiency of payment financially sound entities to operate. PAs must
systems through comprehensive regulation of conduct thorough KYC and AML checks on mer-
payment aggregators, mandating due diligence chants to prevent fraud and protect consumer
for Aadhaar Enabled Payment System (AePS) trust, while escrow account operations are reg-
43Report on Trend and Progress of Banking in India 2024-25
ulated to ensure proper usage, accounting, re- remitters to verify the beneficiary’s account name
porting, and liquidity management. before initiating a payment transaction. The
facility, developed by NPCI, has been designed
8.2 Aadhaar Enabled Payment System (AePS)
to fetch the account name from the beneficiary
– Due Diligence of AePS Touchpoint Operators
bank’s core banking solution (CBS) based on
III.70 Aadhaar Enabled Payment System,
the account number and Indian financial system
operated by National Payments Corporation code (IFSC) entered by the remitter.
of India (NPCI), enables interoperable banking
8.4 Continuous Clearing of Cheques under
transactions using Aadhaar authentication.
Cheque Truncation System
To enhance the security and integrity of AePS
III.72 With the objective of making cheque
transactions, it was considered necessary
clearing faster and reducing settlement
to specifically recognise AePS Touchpoint
risks, continuous clearing and settlement on
Operators (ATOs), streamline their onboarding,
realisation was implemented in cheque
and strengthen risk management practices.
truncation system (CTS), with phase 1 of the
Accordingly, on June 27, 2025, the Reserve
project going-live on October 4, 2025. Under this,
Bank issued Directions mandating stricter due
cheques are scanned, presented, and passed in
diligence and risk management for ATOs to be
a few hours and on a continuous basis during
effective from January 1, 2026. Acquiring banks
business hours, instead of the batch processing
must conduct full KYC of ATOs (or adopt existing
approach followed earlier. Settlements occur
KYC, if already done by BCs /sub-agents), ensure
based on positive or deemed confirmations,
periodic updates, and re-do KYC if an ATO
while dishonoured cheques are not settled. Once
remains inactive for over three months. Banks
settlement is complete, presenting banks must
are also required to continuously monitor
credit customer accounts immediately, and no
ATOs’ activities through transaction monitoring
later than one hour after settlement.
systems, set and periodically review operational
parameters (such as location, transaction 8.5 UPI Access for Prepaid Payment Instruments
volume and velocity), and strengthen fraud risk through Third-party Applications
management measures. These measures aim
III.73 The Reserve Bank allowed full-KYC
to enhance security, prevent fraud, and protect
prepaid payment instrument (PPI) holders
customer trust in AePS.
to make/receive UPI payments through third-
8.3 Introduction of Beneficiary Account Name
party UPI applications. While UPI payments
Look-up Facility
from bank accounts can be made by linking a
III.71 To reduce errors and prevent frauds in bank account through the UPI App of the bank
electronic fund transfers, the Beneficiary Account or using any third-party UPI application, the
Name Look-up Facility for RTGS and NEFT was same facility was not available for PPIs. PPIs
implemented. The Reserve Bank advised all could be used to make UPI transactions only by
banks to provide the facility to their customers using the application provided by the PPI issuer.
through mobile app and net banking. Like the Discovery and linking of full-KYC PPIs has
facility already available in UPI and immediate now been permitted on third party UPI
payment service (IMPS), this facility allows applications.
44DOMESTIC POLICY ENVIRONMENT
9. Overall Assessment III.75 In the current uncertain global
environment, these initiatives will support the
III.74 The Indian financial sector is undergoing
ability of regulated entities to finance productive
a transformative phase, shaped by evolving
economic activities, manage risk prudently, and
market dynamics, technological innovations,
respond effectively to emerging challenges and
and increasing sophistication of consumers
opportunities. By aligning regulatory practices
and businesses. The Reserve Bank’s policy
with international standards while adapting to
measures aimed at strengthening the resilience
India’s national priorities, the Reserve Bank
and competitiveness of banks, enhancing
seeks to foster a robust, inclusive, and efficient
credit flow, improving ease of doing business, financial system, ensure financial stability,
promoting consumer protection, and further bolster public confidence, and promote
internationalising the Indian Rupee. sustainable growth.
45IV
COMMERCIAL BANKS
Banking sector in India remained resilient during 2024-25, supported by a strong balance sheet, sustained
profitability and improved asset quality. Bank credit and deposit growth continued in double-digits, albeit
with a moderation. Capital and liquidity buffers remained well above the regulatory requirements across
bank groups. Strong banking sector fundamentals provide a buffer against risks, which together with
prudent regulation create conditions for sustained credit flow.
Introduction1 payments ecosystem, in turn, is furthering
financial inclusion. On October 1, 2025, the
IV.1 The Indian commercial banking sector
Reserve Bank proposed several measures to
remained resilient during 2024-25, supported by
broaden the scope of banks’ lending activities,
double-digit balance sheet expansion. Deposits
promote ease of doing business, and enhance
and credit of scheduled commercial banks
protection of consumers’ interest, including
grew in double digits, albeit with a moderation
bolstering the deposit insurance framework, for
from last year. The transmission of policy rate
strengthening the resilience and competitiveness
easing during 2025 to deposit and lending rates
of the banking sector.
continued. Profitability of scheduled commercial
IV.3 Against this backdrop, this chapter
banks remained robust with an increase in
is organised into 17 sections. Balance sheet
return on assets. Banks maintained their strong
developments are analysed in Section 2, followed
capital position with capital to risk-weighted
by an assessment of financial performance and
assets ratio and leverage ratio remaining well
soundness in Sections 3 and 4, respectively.
above the regulatory requirements. Asset quality
Section 5 focuses on bank credit and its sectoral
strengthened further, with gross non-performing
dynamics. Commercial banks’ ownership
assets ratio declining to a multi-decadal low and
pattern is discussed in Section 6, followed by
slippage ratio falling for the fifth consecutive
corporate governance in Section 7. Operations of
year. Liquidity buffers remained strong with
foreign banks in India and overseas operations
liquidity coverage ratio and net stable funding
of Indian banks are discussed in Section 8,
ratio well above the regulatory requirements
followed by developments in payment systems
across bank-groups. Differentiated banks
(Section 9), technology adoption (Section 10),
serving niche areas also witnessed a growth
consumer protection (Section 11), and financial
in their scale of operations, with performance
inclusion (Section 12). Developments relating
indicators remaining broadly robust.
to regional rural banks, local area banks, small
IV.2 The volume and value of digital payments finance banks, and payments banks are set out
continued to register healthy growth, with a in Sections 13 to 16. An overall assessment of
sustained pickup in unified payments interface the domestic commercial banking system in
(UPI) transactions. Advancement in digital Section 17 completes the chapter.
1 Throughout this chapter, unless explicitly stated otherwise, data for scheduled commercial banks and private sector banks from
July 2023 onwards are inclusive of merger of a non-bank with a private sector bank.
46COMMERCIAL BANKS
2. Balance Sheet Analysis 135 were classified as scheduled banks, while
four were non-scheduled.3
IV.4 At end-March 2025, India’s commercial
banking sector consisted of 12 public sector IV.5 The consolidated balance sheet of
banks (PSBs), 21 private sector banks (PVBs), scheduled commercial banks (SCBs) (excluding
44 foreign banks (FBs), 11 small finance banks RRBs) increased by 11.2 per cent during 2024-
(SFBs), six payments banks (PBs), 43 regional 25 as compared with 15.5 per cent during 2023-
rural banks (RRBs), and two local area banks 24 (Table IV.1 and Appendix Table IV.1). On
(LABs).2 Out of these 139 commercial banks, the assets side, bank credit and investments
Table IV.1: Consolidated Balance Sheet of Scheduled Commercial Banks
(At end-March)
(₹ crore)
Item Public Sector Private Sector Foreign Small Finance Payments Scheduled Commercial
Banks Banks Banks Banks Banks Banks
2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025
1 2 3 4 5 6 7 8 9 10 11 12 13
1. Capital 72,877 75,209 32,832 33,781 1,18,319 1,37,462 7,844 8,307 5,001 5,303 2,36,873 2,60,063
2. Reserve and Surplus 9,56,917 11,32,923 12,14,000 14,19,882 1,79,507 2,05,019 32,957 36,339 -2,365 -2,141 23,81,016 27,92,021
3. Deposits 1,29,04,944 1,41,96,270 75,61,434 85,02,193 10,08,119 11,08,188 2,50,896 3,15,401 16,184 25,131 2,17,41,578 2,41,47,183
3.1. Demand Deposits 8,00,415 9,52,585 9,88,296 10,65,197 3,46,863 3,83,121 10,895 13,685 76 89 21,46,546 24,14,678
3.2. Savings Bank 41,83,455 43,18,072 20,23,907 21,41,306 57,827 63,020 59,691 68,666 16,108 25,042 63,40,988 66,16,106
Deposits
3.3. Term Deposits 79,21,074 89,25,613 45,49,230 52,95,690 6,03,430 6,62,046 1,80,310 2,33,050 0 0 1,32,54,044 1,51,16,400
4. Borrowings 10,24,003 11,84,026 12,84,429 11,64,192 2,03,073 3,37,436 28,255 30,022 713 1,930 25,40,474 27,17,607
5. Other Liabilities and 5,34,493 5,53,322 4,28,932 4,62,542 1,96,692 2,63,798 15,328 15,394 5,135 6,320 11,80,579 13,01,376
Provisions
Total Liabilities/Assets 1,54,93,234 1,71,41,751 1,05,21,628 1,15,82,590 17,05,711 20,51,903 3,35,280 4,05,463 24,668 36,543 2,80,80,5203,12,18,250
1. Cash and Balances 6,18,769 7,08,963 5,32,750 5,60,941 1,05,980 1,26,006 17,503 26,780 3,004 3,555 12,78,007 14,26,245
with RBI
2. Balances with Banks 4,34,252 5,42,068 1,89,051 2,86,458 74,865 1,46,574 6,259 5,777 4,313 6,488 7,08,740 9,87,364
and Money at Call and
Short Notice
3. Investments 40,50,865 42,68,092 23,23,647 26,37,218 8,07,328 9,26,786 74,283 87,286 14,286 23,445 72,70,409 79,42,827
3.1 In Government 34,84,382 35,89,786 19,88,718 22,47,035 7,35,661 8,40,631 63,873 70,755 14,271 23,418 62,86,905 67,71,625
Securities (a+b)
a) In India 34,23,192 35,14,009 19,73,422 22,24,022 7,25,476 7,94,906 63,873 70,755 14,271 23,418 62,00,234 66,27,110
b) Outside India 61,190 75,777 15,296 23,013 10,185 45,725 0 0 0 0 86,671 1,44,515
3.2 Other Approved 5 149 0 0 0 0 0 0 0 0 5 149
Securities
3.3 Non-approved 5,66,477 6,78,157 3,34,929 3,90,183 71,667 86,155 10,410 16,531 15 27 9,83,499 11,71,053
Securities
4. Loans and Advances 95,06,329 1,07,50,234 68,61,388 74,76,925 5,48,443 6,19,967 2,26,148 2,72,481 0 0 1,71,42,309 1,91,19,608
4.1 Bills Purchased 3,57,393 4,04,154 1,50,663 1,54,634 85,242 88,163 1,444 3,097 0 0 5,94,742 6,50,048
and Discounted
4.2 Cash Credits, 33,64,717 39,02,589 19,59,717 23,25,667 2,38,921 2,71,680 26,945 38,359 0 0 55,90,301 65,38,295
Overdrafts, etc.
4.3 Term Loans 57,84,218 64,43,492 47,51,009 49,96,625 2,24,280 2,60,124 1,97,758 2,31,024 0 0 1,09,57,266 1,19,31,265
5. Fixed Assets 1,18,864 1,28,705 56,768 65,826 5,956 6,042 3,353 4,205 1,189 1,354 1,86,130 2,06,132
6. Other Assets 7,64,154 7,43,689 5,58,022 5,55,220 1,63,139 2,26,527 7,733 8,936 1,876 1,701 14,94,925 15,36,073
Notes: 1. Data for SCBs exclude RRBs.
2. Components may not add up to their respective totals as numbers have been rounded-off to ₹ crore.
3. Detailed bank-wise data on annual accounts are collated and published in Statistical Tables Relating to Banks in India, which is being released
simultaneously with this Report and is available at https://data.rbi.org.in.
Source: Annual accounts of respective banks.
2 The number of SFBs declined from 12 to 11 in 2024-25 following the merger of one SFB with another, effective April 1, 2024.
3 Commercial banks are classified into scheduled and non-scheduled based on their inclusion or otherwise in the second schedule of
the RBI Act, 1934. At end-March 2025, two PBs, viz., Jio Payments Bank Ltd. and NSDL Payments Bank Ltd. and two LABs, viz.,
Coastal Local Area Bank Ltd. and Krishna Bhima Samruddhi Local Area Bank Ltd. were non-scheduled commercial banks.
47Report on Trend and Progress of Banking in India 2024-25
increased by 11.5 per cent and 9.2 per cent, investments and loans during 2024-25, remained
respectively, in 2024-25. On the liabilities side, broadly similar to that of the previous year. The
deposits increased by 11.1 per cent in 2024-25. composition, however, varied across bank groups
(Chart IV.2). The share of deposits in the total
IV.6 Excluding the impact of merger, the
liabilities of PVBs increased amidst a reduction
growth in bank credit and investments was 12.5
in the share of borrowings. The share of deposits
per cent and 9.9 per cent, respectively, during
in the total liabilities of PSBs declined.
2024-25 as compared with 16.0 per cent and
11.6 per cent, respectively, in 2023-24. Deposit 2.1 Liabilities
growth, excluding the impact of merger, was
IV.9 Deposit growth of SCBs moderated
11.4 per cent in 2024-25 as compared with 13.4
in 2024-25, led by private and foreign banks
per cent a year ago (Chart IV.1).
(Chart IV.3a). Component-wise, the moderation
IV.7 The share of PSBs in the consolidated was mainly driven by a slowdown in growth of
balance sheet of SCBs declined to 54.9 per cent term deposits. The weighted average term deposit
at end-March 2025 from 55.2 per cent at end- rate of SCBs increased by 259 basis points (bps)
March 2024. The share of PVBs also moderated against the cumulative increase in policy repo
marginally to 37.1 per cent from 37.5 per cent rate by 250 bps during the tightening phase
over the same period. In contrast, the share of (May 2022-January 2025). In the subsequent
FBs, SFBs and PBs increased during 2024-25.
easing phase, weighted average term deposit
Further, the share of PSBs in total advances
rate of SCBs declined by 105 bps (up to October
of SCBs increased to 56.2 per cent, while
2025) following a 100 bps cut in the policy repo
their share in total deposits decreased to 58.8
rate (February-June 2025)4. Public sector banks
per cent.
exhibited relatively higher transmission to
IV.8 The composition of consolidated balance deposit rates than private sector banks (Charts
sheet of SCBs in terms of deposits, borrowings, IV.3b and c).
Chart IV.1: Select Aggregates of SCBs
(Y-o-y growth at end-March, per cent)
25
20
15 12.5
11.4
10 9.9
5
0
Notes: 1. Data for SCBs exclude RRBs.
2. Excluding merger indicates excluding the impact of merger of a non-bank with a private sector bank.
3. Data labels signify respective variables excluding the impact of merger.
4. Dotted lines represent respective variables including the impact of merger.
Source: Annual accounts of respective banks.
48
02-9102 12-0202 22-1202 32-2202 42-3202 52-4202
Deposit growth (excluding merger) Investment growth (excluding merger) Credit growth (excluding merger)
4 Policy repo rate was further reduced by 25 bps to 5.25 per cent on December 5, 2025.COMMERCIAL BANKS
Chart IV.2: Bank Group-wise Balance Sheet Composition
(Share of total assets/liabilities at end-March in per cent)
Note: Data for SCBs exclude RRBs.
Source: Annual accounts of respective banks.
2.2 Assets IV.11 The transmission of policy repo rate
IV.10 Bank credit growth moderated during changes to lending rates varied during different
2024-25 across the bank groups (Chart IV.4). phases and across bank groups. SCBs passed on
49
8.28
4.37
3.77
9.6 1.01 7.8
9.42 8.22 4.52
7.26 6.46 2.16
90
80
70
60
50
40
30
20
10
0
2024 2025 2024 2025 2024 2025 2024 2025
Deposits Borrowings Investments Loans and advances
Public sector banks Private sector banks Scheduled commercial banks
Chart IV.3: Bank Deposit Growth and Monetary Transmission to Banks' Deposit Rates
a. Weighted Contribution to Deposit Growth
(Y-o-y growth at end-March, per cent)
25
20
15 12.4 11.1
10 10.0 2.6 9.9 2.5
2.2 4.1
5 7.8 9.9 5.8 8.6
0
-5 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025
Public sector banks Private sector banks Foreign banks Scheduled commercial banks
Term deposits CASA deposits Aggregate deposits
b. Transmission to Weighted Average Term Deposit c. Transmission to Weighted Average Term Deposit
Rates in Tightening Cycle (Fresh Deposits) Rates in Easing Cycle (Fresh Deposits)*
(Basis points) (Basis points)
300 274
259 250
250
200 231
150
100
50
0
CASA: Current accounts and savings accounts.
*: Policy repo rate was further reduced by 25 bps to 5.25 per cent on December 5, 2025.
Note: Data for SCBs exclude RRBs.
Sources: Annual accounts of banks and RBI.
22-yaM 22-peS 32-naJ 32-yaM 32-peS 42-naJ 42-yaM 42-peS 52-naJ
30
10
-10
-30
-50
-70
-90 -97-100
-110 -105-104
Repo rate Private sector banks Repo rate Private sector banks
Public sector banks Scheduled commercial banks Public sector banks Scheduled commercial banks
52-beF 52-raM 52-rpA 52-yaM 52-nuJ 52-luJ 52-guA 52-peS 52-tcOReport on Trend and Progress of Banking in India 2024-25
Chart IV.4: Bank Group-wise Credit Growth
(Y-o-y, per cent)
35
30
25
20
15
10
5
0
Public sector banks Private sector banks Foreign banks Scheduled commercial banks
Note: Data for SCBs exclude RRBs.
Source: Spatial Distribution of Deposits and Credit, RBI.
50
12-raM 12-nuJ 12-peS 12-ceD 22-raM 22-nuJ 22-peS 22-ceD 32-raM 32-nuJ 32-peS 32-ceD 42-raM 42-nuJ 42-peS 42-ceD 52-raM 52-nuJ 52-peS
182 bps of the 250 bps increase in the policy repo IV.12 SCBs’ investments growth decelerated
rate (May 2022–January 2025) to the weighted during 2024-25 led by statutory liquidity
ratio (SLR) investments. The share of SLR
average lending rate on fresh loans during the
approved securities in SCBs’ total investments
tightening phase. During the subsequent easing
declined to 80.8 per cent at end-March 2025 from
phase, transmission was 69 bps (up to October
82.0 per cent a year ago (Chart IV.6a). Central
2025) against a 100 bps policy repo rate cut
government securities dominated SCBs’ SLR
(February-June 2025)5. Transmission has been
investments, while non-SLR investments were
asymmetric between PSBs and PVBs (Charts majorly in debt securities. The share of state
IV.5 a and b). government securities and equities in SLR and
Chart IV.5: Monetary Transmission to Banks' Lending Rates
a. Transmission to Weighted Average Lending b. Transmission to Weighted Average Lending
Rates in Tightening Cycle (Fresh Loans) Rates in Easing Cycle (Fresh Loans)*
(Basis points) (Basis points)
300
250 250
200 182
182
150 167
100
50
0
Repo rate Private sector banks Repo rate Private sector banks
Public sector banks Scheduled commercial banks Public sector banks Scheduled commercial banks
*: Policy repo rate was further reduced by 25 bps to 5.25 per cent on December 5, 2025.
Note: Data for SCBs exclude RRBs.
Source: RBI.
5 Policy repo rate was further reduced by 25 bps to 5.25 per cent on December 5, 2025.
22-yaM 22-luJ 22-peS 22-voN 32-naJ 32-raM 32-yaM 32-luJ 32-peS 32-voN 42-naJ 42-raM 42-yaM 42-luJ 42-peS 42-voN 52-naJ
30
10
-10
-30
-50
-69
-70 -70
-74 -90
-100
-110
52-beF 52-raM 52-rpA 52-yaM 52-nuJ 52-luJ 52-guA 52-peS 52-tcOCOMMERCIAL BANKS
Chart IV.6: Investments of Scheduled Commercial Banks
(At end-March)
a. Share in Total Investments
(Per cent)
100
21.9 16.6 14.2 19.2
80
60
40 78.1 83.4 85.8 80.8
20
0
2024 2025 2024 2025 2024 2025 2024 2025
Public sector banks Private sector banks Foreign banks Scheduled commercial banks
SLR investments Non-SLR investments
b. Share in SLR Investments c. Share in Non-SLR Investments
(Per cent) (Per cent)
100 0.1 1.4 100
789 000
48.8
20.3 33.0 789 000 13.4 17.5 31.0 16.0
23456 00000
51.1
79.7
98.6
67.0
3456 0000
86.6 82.5
69.0
84.0
10 20
0 10
2024 2025 2024 2025 2024 2025 2024 2025 0
Public Private Foreign Scheduled 2024 2025 2024 2025 2024 2025 2024 2025
sector banks sector banks banks commercial Public Private Foreign Scheduled
banks sector banks sector banks banks commercial
banks
Other approved securities Central government securities
State government securities Debt securities Equities
SLR: Statutory liquidity ratio.
Notes: 1. Data for SCBs exclude RRBs.
2. The sum of components may not add up to 100 due to rounding off.
Source: Off-site returns (global operations), RBI.
non-SLR investments, respectively, increased generally of short- to medium-term tenors,
during the year (Charts IV.6b and c). whereas loans are generally extended for the
medium term. During 2024-25, maturity
IV.13 The credit-deposit growth gap narrowed
mismatch widened in the short-term7 bucket
during 2024-25 as compared with the previous
as compared to the previous year, although it
year (Chart IV.7). The credit-deposit ratio of
SCBs, however, stood higher at 79.2 per cent remained low relative to the pre-pandemic levels
at end-March 2025 as compared with 78.8 per (Chart IV.8).
cent at end-March 2024. At end-November 2025,
IV.15 At end-March 2025, the share of short-
credit-deposit ratio of SCBs stood at 80.5 per
term deposits in total deposits increased across
cent.6
all bank groups. These deposits remained the
2.3 Maturity Profile of Assets and Liabilities dominant category for all bank groups, except
IV.14 Maturity mismatches between assets and payments banks. The share of short-term
liabilities are inherent to the banking system, borrowings increased for SCBs, led by private
as deposits — the main source of funds — are and foreign banks. Loans and advances of
6 Based on fortnightly Section-42 return. The data corresponds to the fortnight ended November 28, 2025.
7 Short-term is defined as up to one year, medium term is over one year and up to five years, while long-term is defined as over five
years.
51Report on Trend and Progress of Banking in India 2024-25
Chart IV.7: Gap in Credit-Deposit Growth
(Percentage point)
10
8
6
4
2
0
-2
-4
-6
-8
Notes: 1. Data from July 1, 2023 till June 27, 2025 excludes the impact of merger of a non-bank with a private sector bank.
2. Gap in credit-deposit growth is calculated as the difference between credit growth and deposit growth.
Source: RBI.
52
12-raM-62 12-rpA-32 12-yaM-12 12-nuJ-81 12-luJ-61 12-guA-31 12-peS-01 12-tcO-8 12-voN-5 12-ceD-3 12-ceD-13 22-naJ-82 22-beF-52 22-raM-52 22-rpA-22 22-yaM-02 22-nuJ-71 22-luJ-51 22-guA-21 22-peS-9 22-tcO-7 22-voN-4 22-ceD-2 22-ceD-03 32-naJ-72 32-beF-42 32-raM-42 32-rpA-12 32-yaM-91 32-nuJ-61 32-luJ-41 32-guA-11 32-peS-8 32-tcO-6 32-voN-3 32-ceD-1 32-ceD-92 42-naJ-62 42-beF-32 42-raM-22 42-rpA-91 42-yaM-71 42-nuJ-41 42-luJ-21 42-guA-9 42-peS-6 42-tcO-4 42-voN-1 42-voN-92 42-ceD-72 52-naJ-42 52-beF-12 52-raM-12 52-rpA-81 52-yaM-61 52-nuJ-31 52-luJ-11 52-guA-8 52-peS-5 52-tcO-3 52-tcO-13 52-voN-82
both PSBs and PVBs were concentrated in the
medium-term category. PSBs’ investments were
typically in long-term instruments, while all other
bank groups preferred short-term exposures
(Table IV.2).
2.4 International Liabilities and Assets
IV.16 The ratio of international assets to
liabilities of Indian banks increased in 2024-
Chart IV.8: Maturity Bucket-wise Assets and Liabilities Gap
(Per cent of total assets/liabilities)
Notes: 1. Assets consist of loans and advances and investments.
2. Liabilities consist of deposits and borrowings.
3. Gap is calculated as assets minus liabilities.
Source: Annual accounts of banks.
4.7-
7.4
6.1 7.1
6.0
4.0
2.0
0.0
-2.0
-4.0
-6.0
-8.0
-10.0
-12.0
02-9102 12-0202 22-1202 32-2202 42-3202 52-4202
25, following two consecutive years of decline
(Chart IV.9). The growth of international assets
of Indian banks increased during the year on
account of increase in NOSTRO balances and
placements abroad, loans to non-residents,
and foreign currency loans to residents. The
growth of international liabilities of banks in
India decelerated mainly due to a deceleration
in growth of non-resident ordinary (NRO) rupee
Upto 1 year Over 1 year and up to 3 years Over 3 years and up to 5 years Over 5 yearsCOMMERCIAL BANKS
Table IV.2: Bank Group-wise Maturity Profile of Select Liabilities/Assets
(At end-March)
(Per cent)
Liabilities/Assets PSBs PVBs FBs SFBs PBs SCBs
2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025
1 2 3 4 5 6 7 8 9 10 11 12 13
I. Deposits
a) Up to 1 year 38.4 39.6 39.3 39.4 62.2 63.3 49.0 55.7 22.6 29.1 39.9 40.8
b) Over 1 year and up to 3 years 22.0 21.7 27.9 26.2 30.7 29.8 44.8 38.5 77.4 70.9 24.7 24.0
c) Over 3 years and up to 5 years 11.0 10.8 8.3 8.9 7.1 6.9 4.5 3.9 0.0 0.0 9.8 9.9
d) Over 5 years 28.7 27.9 24.5 25.4 0.0 0.0 1.7 1.8 0.0 0.0 25.6 25.4
II. Borrowings
a) Up to 1 year 58.1 53.1 33.8 44.7 82.8 89.8 51.3 48.5 100.0 93.3 47.7 54.0
b) Over 1 year and up to 3 years 16.7 16.0 37.8 27.0 16.2 8.5 35.7 34.6 0.0 6.7 27.5 20.0
c) Over 3 years and up to 5 years 6.9 7.4 9.9 9.8 0.4 0.4 7.3 9.1 0.0 0.0 7.9 7.6
d) Over 5 years 18.3 23.6 18.6 18.5 0.6 1.4 5.8 7.7 0.0 0.0 16.9 18.5
III. Loans and Advances
a) Up to 1 year 28.0 28.4 27.3 28.6 59.5 58.7 37.7 38.1 - - 28.9 29.6
b) Over 1 year and up to 3 years 36.5 36.1 34.6 34.8 23.8 23.6 36.0 32.6 - - 35.3 35.1
c) Over 3 years and up to 5 years 12.1 11.5 12.5 12.3 8.2 8.7 10.1 11.6 - - 12.1 11.7
d) Over 5 years 23.4 24.0 25.6 24.3 8.5 8.9 16.3 17.7 - - 23.7 23.5
IV. Investments
a) Up to 1 year 22.4 21.5 58.6 59.9 83.9 83.6 68.6 68.2 99.2 92.8 41.4 42.2
b) Over 1 year and up to 3 years 16.2 13.5 17.2 15.1 10.4 9.9 25.9 25.1 0.4 2.6 16.0 13.7
c) Over 3 years and up to 5 years 11.9 15.4 6.1 6.3 1.6 2.2 4.0 4.9 0.1 0.8 8.8 10.7
d) Over 5 years 49.4 49.6 18.1 18.7 4.1 4.4 1.5 1.8 0.3 3.8 33.8 33.4
- : Not applicable.
Notes: 1. Figures denote share of each maturity bucket in each component of the balance sheet.
2. The sum of components may not add up to 100 due to rounding off.
3. Data for SCBs exclude RRBs.
Source: Annual accounts of banks.
accounts and equities of banks held by non- IV.17 The consolidated international claims
residents (Appendix Tables IV.2 and IV.3). of Indian banks on all the major economies,
except Hong Kong, increased during 2024-
Chart IV.9: International Assets and Liabilities of Banks
(Per cent) 25 (Appendix Table IV.4). The share of Indian
50
banks’ international claims on non-financial
44.4
private sector moderated while the claims on
40
banks and non-bank financial institutions
30 increased (Chart IV.10a and Appendix Table
31.4
IV.5). In terms of residual maturity, a majority
20
of the international claims was short-term in
nature, notwithstanding a decline in its share
10
during 2024-25 (Chart IV.10b).
0
Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 2.5 Off-Balance Sheet Operations
Ratio of international assets to international liabilities
IV.18 Growth in contingent liabilities of SCBs
Ratio of international liabilities to external debt
accelerated during 2024-25, primarily driven by
Sources: International Banking Statistics and Database on Indian
Economy, RBI.
growth in forward exchange contracts. The off-
53Report on Trend and Progress of Banking in India 2024-25
Chart IV.10: Consolidated International Claims of Indian Banks
(At end-March)
a. By Sector b. By Residual Maturity
(Per cent) (Per cent)
100 2.7 100 0.7
19.2
80 33.2 80
60 5.4
7.5 60
40
40 80.2
51.2
20
20
0
2021 2022 2023 2024 2025
0
Banks Official sector 2021 2022 2023 2024 2025
Non-bank financial institutions Non-financial private
Others Short-term Long-term Unallocated
Note: Short-term and long-term claims are defined as claims having residual maturity up to one year and over one year, respectively.
Sources: International Banking Statistics and Database on Indian Economy, RBI.
balance sheet exposure of SCBs, as a proportion from 18.8 per cent to 12.8 per cent at end-March
of their balance sheet size, increased to 161.9 2025 (Chart IV.11b).
per cent at end-March 2025 from 138.6 per cent
3. Financial Performance
at end-March 2024 (Chart IV.11a and Appendix
IV.19 Profitability of SCBs remained robust,
Table IV.6). Foreign banks accounted for more
with return on assets (RoA) increasing
than half of the total off-balance sheet exposures
further to 1.4 per cent in 2024-25 from 1.3
of SCBs. The share of PVBs in contingent
liabilities of the banking sector increased from per cent in the previous year. The return on
29.1 per cent at end-March 2021 to 32.5 per equity (RoE) of SCBs at 13.5 per cent remained
cent at end-March 2025, while that of PSBs fell broadly stable. PSBs exhibited an improvement
Chart IV.11: Off-Balance Sheet Liabilities of Banks
a. Off-Balance Sheet Exposures b. Distribution of Off-Balance Sheet Exposures
(Y-o-y growth, per cent, left scale; per cent, right scale) (Share at end-March, per cent)
35 180
161.9
160
30 29.8
140
25
120
20 100
15 80
60
10
40
5
20
0 0
Source: Annual accounts of banks.
54
12-0202 22-1202 32-2202 42-3202 52-4202
100
80
54.7
60
40
32.5
20
12.8
0
Share in total balance sheet (RHS) Growth
12-0202 22-1202 32-2202 42-3202 52-4202
Foreign banks Public sector banks Private sector banksCOMMERCIAL BANKS
Chart IV.12: Profitability Ratios
a. Return on Assets b. Return on Equity
(Per cent) (Per cent)
2.5
2.0 1.8
1.6
1.5 1.3
1.1
1.0
0.5
0.0
-0.5
Public sector banks Foreign banks Public sector banks Foreign banks
Private sector banks Scheduled commercial banks Private sector banks Scheduled commercial banks
Note: Data for SCBs exclude RRBs.
Source: Off-site returns (domestic operations), RBI.
in RoA and RoE during 2024-25, while PVBs IV.20 Net profits of SCBs increased during
recorded a moderation. During H1: 2025-26, 2024-25, albeit at a slower pace compared to the
RoA and RoE of SCBs stood at 1.3 per cent previous year. This partly reflected the impact
and 12.5 per cent, respectively (Charts IV.12a of moderation in growth of net interest income.
and b). Growth in operating expenses decelerated
55
02-raM 12-raM 22-raM 32-raM 42-raM 52-raM 52-peS
20
15 13.412.6
12.5
10 10.3
5
0
-5
-10
02-raM 12-raM 22-raM 32-raM 42-raM 52-raM 52-peS
Table IV.3: Trends in Income and Expenditure of Scheduled Commercial Banks
(Amount in ₹ crore)
Item PSBs PVBs FBs SFBs PBs SCBs
2023-24 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24 2024-25
1 2 3 4 5 6 7 8 9 10 11 12 13
A. Income 12,12,665 13,65,244 9,41,870 10,70,709 1,29,8381,46,580 45,400 54,223 7,102 6,937 23,36,876 26,43,694
(24.8) (12.6) (36.4) (13.7) (20.1) (12.9) (34.3) (19.4) (19.0) (-2.3) (29.1) (13.1)
i) Interest Income 10,66,243 11,89,294 7,96,578 9,10,560 1,06,0451,20,478 39,647 46,782 1,416 1,694 20,09,929 22,68,809
(25.3) (11.5) (36.8) (14.3) (27.3) (13.6) (33.0) (18.0) (64.6) (19.7) (29.9) (12.9)
ii) Other Income 1,46,422 1,75,951 1,45,292 1,60,149 23,794 26,101 5,753 7,441 5,686 5,243 3,26,946 3,74,885
(21.7) (20.2) (34.2) (10.2) (-4.1) (9.7) (43.8) (29.3) (11.4) (-7.8) (24.6) (14.7)
B. Expenditure 10,71,463 11,86,881 7,66,573 8,81,498 1,02,9531,16,665 39,181 50,727 7,103 6,743 19,87,273 22,42,514
(23.6) (10.8) (35.3) (15.0) (32.0) (13.3) (32.2) (29.5) (21.5) (-5.1) (28.5) (12.8)
i) Interest Expended 6,58,611 7,60,165 4,29,739 5,08,877 46,996 55,866 17,474 22,336 353 537 11,53,173 13,47,782
(35.0) (15.4) (56.0) (18.4) (48.4) (18.9) (43.9) (27.8) (43.8) (52.2) (42.9) (16.9)
ii) Operating Expenses 2,95,090 3,03,100 2,39,146 2,61,471 34,713 38,708 17,186 20,247 6,634 6,070 5,92,769 6,29,596
(20.9) (2.7) (18.1) (9.3) (24.2) (11.5) (30.7) (17.8) (18.9) (-8.5) (20.2) (6.2)
of which: Wage Bill 1,84,025 1,77,894 90,290 98,841 10,460 11,211 8,498 10,321 1,215 977 2,94,488 2,99,244
(27.2) (-3.3) (27.9) (9.5) (3.9) (7.2) (26.8) (21.4) (32.9) (-19.5) (26.4) (1.6)
iii) Provision and 1,17,761 1,23,615 97,688 1,11,150 21,244 22,092 4,521 8,144 116 135 2,41,331 2,65,137
Contingencies (-12.8) (5.0) (10.5) (13.8) (15.8) (4.0) (3.8) (80.1) (488.4) (16.9) (-2.0) (9.9)
C. Operating Profit 2,58,964 3,01,979 2,72,986 3,00,362 48,130 52,006 10,740 11,640 114 330 5,90,934 6,66,316
(8.1) (16.6) (28.4) (10.0) (-0.8) (8.1) (26.1) (8.4) (-18.9) (187.9) (16.0) (12.8)
D. Net Profit 1,41,202 1,78,364 1,75,297 1,89,211 26,886 29,915 6,219 3,496 -1 194 3,49,603 4,01,180
(34.9) (26.3) (41.2) (7.9) (-10.8) (11.3) (49.4) (-43.8) - - (32.8) (14.8)
E. Net Interest Income (NII) 4,07,632 4,29,128 3,66,839 4,01,683 59,049 64,612 22,173 24,446 1,063 1,157 8,56,756 9,21,027
(Ai-Bi) (12.2) (5.3) (19.5) (9.5) (14.4) (9.4) (25.5) (10.3) (72.9) (8.9) (15.7) (7.5)
F. Net Interest Margin (NIM) 2.8 2.6 3.9 3.6 3.6 3.4 7.4 6.6 4.5 3.8 3.3 3.1
-: Not applicable.
Notes: 1. Data for SCBs exclude RRBs.
2. NIM has been defined as NII as percentage of average assets.
3. Figures in parentheses refer to per cent variation over the previous year.
4. Percentage variations could be slightly different as absolute numbers have been rounded off to ₹ crore.
Source: Annual accounts of respective banks.Report on Trend and Progress of Banking in India 2024-25
Chart IV.13: Net Interest Income and Net Interest Margin
a. Components of Net Interest Income b. Distribution of Banks' NIM
(₹ lakh crore, left scale; ₹ lakh crore, right scale) (Per cent at end-March 2025)
7.0 2.5 14
5.0 2.0 12
3.0
1.5
10
1.0
1.0
-1.0 8
-3.0 0.5
6
-5.0 0.0
4
2
Interest on loans and advances
Interest income on investment Net interest income (RHS) 0
Interest expense Public sector banks Private sector banks Foreign banks
Note: The whiskers of the boxplots are indicative of maximum and minimum values. A colored box shows distance between first quartile and third
quartile. Horizontal line in each box shows the median, while ‘X’ shows the mean.
Source: Off-site returns (domestic operations), RBI.
significantly, while provisions and contingencies PVBs, followed by that of FBs and PSBs. PSBs
expenditure increased during 2024-25 as against exhibited relatively uniform NIMs with limited
a decline in the previous year (Table IV.3). cross-bank variation, whereas FBs displayed
highest dispersion in their NIMs followed by PVBs
IV.21 The interest expense to interest income
(Chart IV.13b).
ratio of SCBs increased to 59.4 per cent in
2024-25 from 57.4 per cent in the previous year IV.22 The provision coverage ratio (PCR) (not
(Table IV.3 and Chart IV.13a). The net interest adjusted for write-offs) of SCBs remained stable
margin (NIM) of SCBs moderated to 3.1 per cent at 76.3 per cent at end-March 2025. During
in 2024-25 from 3.3 per cent in the previous 2024-25, the PCR of PSBs increased to 78.5
year. The median NIM remained highest for per cent, while for PVBs it moderated to 72.6
56
12-raM 12-nuJ 12-peS 12-ceD 22-raM 22-nuJ 22-peS 22-ceD 32-raM 32-nuJ 32-peS 32-ceD 42-raM 42-nuJ 42-peS 42-ceD 52-raM 52-nuJ 52-peS
Other interest income
Chart IV.14: Provision Coverage Ratio
(Per cent)
100
90 76.0
80 78.8 72.0 81.5
70
60
50
40
30
20
10
0
Notes: 1. Data for SCBs exclude RRBs.
2. Provision coverage ratio is not write-off adjusted.
Source: Off-site returns (domestic operations), RBI.
12-raM 22-raM 32-raM 42-raM 52-raM 52-peS
Public sector banks Private sector banks Foreign banks Scheduled commercial banksCOMMERCIAL BANKS
Table IV.4: Cost of Funds and Return on Funds – Bank Group-wise
(Per cent)
Bank Group Year Cost of Cost of Cost of Return on Return on Return on Spread
Deposits Borrowings Funds Advances Investments Funds (columns 8-5)
1 2 3 4 5 6 7 8 9
PSBs 2023-24 4.8 7.3 5.0 8.5 6.7 8.0 3.0
2024-25 5.0 7.3 5.2 8.5 6.8 8.0 2.8
PVBs 2023-24 4.8 9.2 5.4 10.4 6.8 9.5 4.1
2024-25 5.1 8.2 5.5 10.0 6.8 9.2 3.7
FBs 2023-24 3.8 5.6 4.1 8.7 6.8 7.6 3.5
2024-25 4.0 5.1 4.2 8.5 6.7 7.4 3.2
SFBs 2023-24 6.8 8.2 7.0 17.0 6.8 14.5 7.5
2024-25 7.1 8.1 7.2 16.2 6.8 13.9 6.7
PBs 2023-24 2.0 11.2 2.4 10.0 7.6 7.6 5.2
2024-25 1.9 11.7 2.4 9.1 6.7 6.7 4.3
SCBs 2023-24 4.8 8.1 5.1 9.4 6.7 8.6 3.5
2024-25 5.0 7.5 5.3 9.2 6.8 8.5 3.2
Notes: 1. Data for SCBs excludes RRBs.
2. Cost of deposits = Interest paid on deposits/(Average of current and previous year’s deposits).
3. Cost of borrowings = (Interest expended - Interest on deposits) / (Average of current and previous year’s borrowings).
4. Cost of funds = Interest expended / (Average of current and previous year’s deposits plus borrowings)
5. Return on advances = Interest earned on advances /(Average of current and previous year’s advances).
6. Return on investments = Interest earned on investments /(Average of current and previous year’s investments).
7. Return on funds = (Interest earned on advances + Interest earned on investments) / (Average of current and previous year’s advances plus
investments).
Sources: Annual accounts of banks and RBI staff calculations.
per cent. At end-September 2025, PCR of SCBs remained well-capitalised, with CRAR and Tier 1
stood at 76.0 per cent (Chart IV.14). capital ratio remaining well above the minimum
regulatory requirements. The CRAR of SCBs
IV.23 During 2024-25, a moderation in the
return on funds alongside an increase in the rose to 17.4 per cent at end-March 2025, with
cost of funds resulted in narrowing of spread an increase witnessed across PSBs and PVBs.
for SCBs. SFBs continued to record the widest The Tier 1 capital ratio of SCBs also improved
spread, reflecting relatively higher interest rates to 15.5 per cent at end-March 2025 led by an
on their advances (Table IV.4). improvement in PSBs and PVBs (Table IV.5).
The CRAR of SCBs stood at 17.2 per cent at end-
4. Soundness Indicators
September 2025.
4.1 Capital Adequacy
IV.25 A wider dispersion in CRAR and common
IV.24 In India, the minimum regulatory capital
equity tier 1 (CET1) ratios was observed in
to risk-weighted assets ratio (CRAR) requirement
case of PVBs as compared to PSBs in 2024-
for banks is set at 9.0 per cent [11.5 per cent
25. The mean as well as the median CRAR and
inclusive of capital conservation buffer (CCB)]
and Tier 1 capital ratio requirement at 7.0 per CET1 ratio, of both PSBs and PVBs, recorded
cent, both one percentage point above the Basel an increase during the year (Charts IV.15 a
III norms.8 At end-March 2025, all bank groups and b).
8 The minimum regulatory CRAR requirement for SFBs is set at 15.0 per cent with Tier 1 capital requirement of at least 7.5 per cent
of the total risk-weighted assets.
57Report on Trend and Progress of Banking in India 2024-25
Table IV.5: Component-wise Capital Adequacy of SCBs
(At end-March)
(Amount in ₹ crore)
PSBs PVBs FBs SFBs SCBs
2024 2025 2024 2025 2024 2025 2024 2025 2024 2025
1 2 3 4 5 6 7 8 9 10 11
1. Capital Funds 11,74,245 13,55,864 12,83,455 14,64,071 2,70,646 3,11,060 41,603 47,390 27,69,949 31,78,386
i) Tier 1 Capital 9,94,510 11,66,550 11,55,051 13,42,472 2,43,842 2,82,833 37,330 41,475 24,30,733 28,33,330
ii) Tier 2 Capital 1,79,735 1,89,314 1,28,404 1,21,599 26,804 28,227 4,273 5,915 3,39,216 3,45,056
2. Risk Weighted Assets 75,59,396 84,23,011 72,14,513 80,03,960 14,18,639 16,57,665 1,92,331 2,20,390 1,63,84,879 1,83,05,026
3. CRAR (1 as % of 2) 15.5 16.1 17.8 18.3 19.1 18.8 21.6 21.5 16.9 17.4
Of which: Tier 1 13.2 13.8 16.0 16.8 17.2 17.1 19.4 18.8 14.8 15.5
Tier 2 2.4 2.2 1.8 1.5 1.9 1.7 2.2 2.7 2.1 1.9
Notes: 1. Data for SCBs exclude RRBs and PBs.
2. Figures in per cent might not add up to the total due to rounding off of numbers.
Source: Off-site returns, RBI.
IV.26 Resources raised by banks through cent for domestic systemically important banks
private placement of debt, qualified institutional and 3.5 per cent for other SCBs. The leverage ratio
placement, and preferential allotment of equity — the ratio of Tier 1 capital to total exposures
in the capital market increased during 2024- — of SCBs’ increased to 8.0 per cent at end-
25. The increase was largely driven by PSBs March 2025, with an improvement across PSBs
which recorded a growth of 36.6 per cent in and PVBs. The liquidity coverage ratio (LCR)
total amount raised through private placements, — designed to withstand liquidity pressures in
mostly through debt instruments (Table IV.6). the short-term — requires banks to maintain
high quality liquid assets to meet 30 days’ net
4.2 Leverage and Liquidity
outgo under stressed conditions. For SCBs, the
IV.27 The leverage ratio is a non-risk based LCR improved to 132.6 per cent at end-March
backstop measure complementing the Basel 2025. It remained well above the regulatory
III risk-based capital framework. In India, the requirement of 100 per cent for all bank groups
minimum leverage ratio requirement is 4.0 per (Table IV.7).
Chart: IV.15: Bank Group-wise CRAR and CET1 Ratio
(At end-March)
a. Capital to Risk-Weighted Assets Ratio (CRAR) b. Common Equity Tier 1 (CET1)
(Per cent) (Per cent)
35 35
30 30
25 25
20 20
15 15
10 10
5 5
0 0
Public sector banks Private sector banks Public sector banks Private sector banks
2023 2024 2025 2023 2024 2025
Note: The whiskers of the boxplots are indicative of maximum and minimum values. A colored box shows distance between first quartile and third
quartile. Horizontal line in each box shows the median, while ‘X’ shows the mean.
Source: Off-site returns, RBI.
58COMMERCIAL BANKS
Table IV.6: Resources Raised by Banks through Private Placements
(Amount in ₹ crore)
2022-23 2023-24 2024-25 2025-26 (Up to November)
No. of issues Amount raised No. of issues Amount raised No. of issues Amount raised No. of issues Amount raised
1 2 3 4 5 6 7 8 9
PSBs 27 70,260 26 97,380 28 1,33,000 6 40,719
PVBs 14 52,903 14 33,426 8 16,419 11 18,192
FBs 2 224 0 0 0 0 0 0
Total 43 1,23,387 40 1,30,806 36 1,49,418 17 58,912
Notes: 1. Include private placement of debt, qualified institutional placement and preferential allotment.
2. Data for 2025-26 are provisional.
3. Figures may not add up to the total due to rounding off.
Sources: SEBI, BSE, and NSE.
IV.28 The net stable funding ratio (NSFR) at end-March 2025 from 2.7 per cent at end-
seeks to ensure that a bank’s available stable March 2024. During 2024-25, around 42.8 per
funding exceeds its required stable funding over cent of the reduction in GNPAs was attributable
a one-year horizon on an ongoing basis. The to recoveries and upgradations. The net NPA
(NNPA) ratio also declined to 0.5 per cent at end-
minimum NSFR that banks in India are required
March 2025, partly reflecting higher provisioning
to maintain is set at 100 per cent, in line with
(Table IV.9). As per supervisory data, at end-
international standards. At end-March 2025,
September 2025, the GNPA and NNPA ratios
NSFR of SCBs stood at 126.4 per cent, much
of SCBs stood at 2.1 per cent and 0.5 per cent,
above the regulatory requirement (Table IV.8).
respectively.
At end-September 2025, NSFR of SCBs stood at
IV.30 The slippage ratio of SCBs, which
124.7 per cent.
measures new accretions to NPAs as a share of
4.3 Non-performing Assets
standard advances at the beginning of the year,
IV.29 The trend of improvement in asset quality declined for the fifth consecutive year to 1.4 per
of banks observed since 2018-19, measured by cent at end-March 2025. Slippage ratio of both
their declining GNPA ratios, continued during PSBs and PVBs declined, although it remained
higher for PVBs (Charts IV.16a and b). For SCBs,
2024-25. The GNPA ratio of SCBs declined
further to a multi-decadal low of 2.2 per cent
Table IV.8: Net Stable Funding Ratio
(At end-March 2025)
Table IV.7: Leverage Ratio and Liquidity
(Amount in ₹ crore)
Coverage Ratio
Available Stable Required Stable Net Stable
(Per cent) Funding Funding Funding Ratio
Leverage Ratio Liquidity Coverage Ratio (Per cent)
1 2 3 4
Mar-24 Mar-25 Sep-25 Mar-24 Mar-25 Sep-25
PSBs 1,22,35,851 96,31,010 127.0
1 2 3 4 5 6 7
PVBs 82,16,358 65,85,675 124.8
PSBs 6.0 6.3 6.2 129.3 132.1 133.7
FBs 8,74,072 6,61,384 132.2
PVBs 9.7 10.2 10.3 127.1 128.6 122.1
SFBs 2,87,381 2,26,049 127.1
FBs 10.8 10.3 10.6 145.0 149.6 157.0
SCBs 2,16,13,661 1,71,04,118 126.4
SFBs 11.0 10.0 9.3 153.3 153.7 142.5
Notes: 1. Data for SCBs exclude RRBs and PBs.
SCBs 7.8 8.0 8.2 130.3 132.6 131.7
2. Constituent items may not add up to the total due to rounding
Note: Data for SCBs exclude RRBs and PBs. off.
Source: Off-site returns, RBI. Source: Off-site returns, RBI.
59Report on Trend and Progress of Banking in India 2024-25
Chart IV.16: Reduction in Gross Non-Performing Assets
a. Slippage Ratio b. Movement in NPAs
(Per cent) (At end-March)
(Per cent of GNPAs of the previous year)
100 94.2
80
60 47.1
40
24.4
20
0
-20
-14.0
-40 -26.9 -24.5
-60
-45.3-46.2 -32.8
Public sector banks Foreign banks
Private sector banks Scheduled commercial banks Additions Write-offs Upgradations and recoveries
Sources: Off-site returns (global operations), RBI and annual accounts of banks.
60
9102 0202 1202 2202 3202 4202 5202 9102 0202 1202 2202 3202 4202 5202 9102 0202 1202 2202 3202 4202 5202
3.5
3.0
2.5
2.0 1.8
1.5
1.3
1.0 0.8 1.1
0.5
0.0
Public sector Private sector Scheduled
banks banks commercial banks
12-raM 22-raM 32-raM 42-raM 52-raM 52-peS
Table IV.9: Non-Performing Assets by Bank Group
(Amount in ₹ crore)
PSBs PVBs FBs SFBs SCBs
1 2 3 4 5 6
Gross NPAs
Closing Balance for 2023-24 3,39,541 1,29,164 6,523 5,590 4,80,818
Opening Balance for 2024-25 3,39,541 1,29,164 6,523 5,391 4,80,619
Addition during the year 2024-25 82,762 1,21,735 7,256 14,607 2,26,359
Reduction during the year 2024-25 1,38,653 1,18,224 8,458 10,009 2,75,344
i. Recovered 33,630 29,320 2,779 1,963 67,693
ii. Upgradations 13,847 30,360 3,322 2,559 50,087
iii. Written-off 91,176 58,544 2,357 5,486 1,57,563
Closing Balance for 2024-25 2,83,650 1,32,674 5,321 9,989 4,31,634
Gross NPAs as per cent of Gross Advances*
2023-24 3.5 1.9 1.2 2.4 2.7
2024-25 2.6 1.8 0.9 3.6 2.2
Net NPAs
2023-24 72,544 31,594 812 1,796 1,06,745
2024-25 55,634 35,069 776 3,910 95,388
Net NPAs as per cent of Net Advances
2023-24 0.8 0.5 0.1 0.8 0.6
2024-25 0.5 0.5 0.1 1.4 0.5
*: Calculated by taking gross NPAs from annual accounts of respective banks and gross advances from off-site returns (global operations).
Notes: 1. Data for SCBs exclude RRBs and PBs.
2. Closing balance for 2023-24 is not equal to opening balance for 2024-25 due to merger of one SFB into another effective April 1, 2024. The
balance NPA pertaining to the merged SFB— amounting to ₹199.54 crores — has been incorporated under GNPA additions during the year
2024–25.
3. Net NPAs=Gross NPA - deductions; net advances=gross advances - deductions. Deductions include: i) provisions held in the case of NPA
accounts as per asset classification; ii) DICGC / ECGC claims received and held pending adjustment; iii) part payment received and kept in
suspense account or any other similar account; iv) balance in sundry account (interest capitalisation – restructured accounts), in respect of NPA
accounts; and v) floating provisions.
4. Constituent items may not add up to the total due to rounding off.
Sources: Annual accounts of banks and off-site returns (global operations), RBI.
slippage ratio further declined to 1.3 per cent at IV.31 Reflecting these gains in asset quality, the
end-September 2025. proportion of standard assets in total advancesCOMMERCIAL BANKS
Table IV.10: Classification of Loan Assets by Bank Group
(Amount in ₹ crore)
Bank Group End-March Standard Assets Sub-standard Assets Doubtful Assets Loss Assets
Amount Per cent* Amount Per cent* Amount Per cent* Amount Per cent*
1 2 3 4 5 6 7 8 9 10
PSBs 2024 84,24,922 96.3 58,576 0.7 1,78,483 2.0 83,681 1.0
2025 95,38,365 97.2 56,039 0.6 1,34,813 1.4 82,561 0.8
PVBs 2024 66,96,942 98.2 44,199 0.6 52,944 0.8 26,397 0.4
2025 72,94,711 98.2 58,336 0.8 50,019 0.7 22,021 0.3
FBs 2024 5,39,598 98.8 1,344 0.2 4,228 0.8 950 0.2
2025 6,12,992 99.1 1,520 0.2 2,629 0.4 1,172 0.2
SFBs 2024 2,24,245 97.6 4,005 1.7 1,514 0.7 71 0.0
2025 2,68,585 96.4 8,423 3.0 1,498 0.5 68 0.0
SCBs 2024 1,58,85,707 97.2 1,08,125 0.7 2,37,169 1.5 1,11,099 0.7
2025 1,77,14,653 97.7 1,24,317 0.7 1,88,959 1.0 1,05,822 0.6
*: As per cent of gross advances.
Notes: 1. Data for SCBs exclude RRBs and PBs.
2. Constituent items may not add up to the total due to rounding off.
Source: Off-site returns (domestic operations), RBI.
increased for SCBs at end-March 2025, led by for both overall and large borrowal accounts
PSBs and FBs (Table IV.10). in 2024-25. The special mention accounts-1
(SMA-1) ratio for SCBs increased during 2024-
IV.32 The share of large borrowal accounts9
25, driven by an increase in SMA-1 for PSBs
in total advances of SCBs remained broadly
(Chart IV.17).
unchanged at 43.9 per cent at end-March 2025.
The special mention accounts-0 (SMA-0), special IV.33 Restructured accounts of SCBs had
mention accounts-2 (SMA-2)10 and NPAs as a increased significantly in 2021-22 following
proportion of gross advances of SCBs declined the introduction of the resolution frameworks
Chart IV.17: Overall Stress vis-à-vis Stress in Large Borrowal Accounts
(At end-March, as per cent of amount outstanding)
6
5 4.5
4
3.0
3 2.6
2.1 2.4 2.2
2 1.8 1.9
1.3 1.3 1.3
1 0.9 0.6 0.20 .6 0.30 .8 0.10 .3 1.0 0.41.1 0.10.5
0
Notes: 1. The ratios for large borrowal accounts and overall accounts are calculated as percentages of their respective amounts outstanding.
2. Data for SCBs exclude RRBs.
Sources: CRILC database and off-site returns (global operations), RBI.
9 Large borrowal accounts refer to accounts with total exposure of ₹5 crore and above.
10 SMA-0 accounts are those wherein the principal or interest payment is not overdue for more than 30 days but account is showing
signs of incipient stress. SMA-1 account are those wherein the principal or interest payment is overdue between 31-60 days. SMA-2
account are those wherein the principal or interest payment is overdue between 61-90 days.
61
4202 5202 4202 5202 4202 5202 4202 5202 4202 5202 4202 5202 4202 5202 4202 5202 4202 5202 4202 5202 4202 5202 4202 5202
SMA-0 SMA-1 SMA-2 NPAs SMA-0 SMA-1 SMA-2 NPAs SMA-0 SMA-1 SMA-2 NPAs
Public sector banks Private sector banks Scheduled commercial banks
Large borrowal accounts OverallReport on Trend and Progress of Banking in India 2024-25
1.0 and 2.0 in the aftermath of the pandemic.
Chart IV.18: Restructured Standard Advances (RSA) Ratio
Subsequently, reflecting the expiry of deadlines (RSA as per cent of total advances)
1.6
for invocation of the restructured standard
1.4
advances and also improvements in asset
1.2
quality, the number of restructured accounts
declined. Consequently, during 2024-25, 1.0 0.9
restructured standard advances ratio declined 0.8 0.7
for overall as well as for large borrowal accounts 0.6 0.6 0.5
of SCBs, led by PSBs.11 PVBs had a lower share 0.4
0.2
of restructured standard advances in gross 0.2 0.2
advances compared to PSBs at end-March 2025 -
Large Overall Large Overall Large Overall
(Chart IV.18). borrowal borrowal borrowal
accounts accounts accounts
Public sector banks Private sector banks Scheduled commercial
4.4 Recoveries banks
Mar-24 Mar-25
IV.34 During 2024-25, the number of cases Note: Data for SCBs exclude RRBs.
Source: CRILC database and off-site returns (global operations), RBI.
referred for resolution decreased under the
Securitisation and Reconstruction of Financial
mode of recovery, followed by the SARFAESI
Assets and Enforcement of Security Interest
route. The share of IBC in total amount
(SARFAESI) Act and Insolvency and Bankruptcy
recovered increased to 52.4 per cent in 2024-25
Code (IBC). The amount involved in referred
as compared with 49.5 per cent in the previous
cases for resolution under the SARFAESI Act
year (Table IV.11). Under the IBC, the realisable
decreased in 2024-25, while the recovery rate
increased to 31.5 per cent. The recovery rate value stood at 170.1 per cent of liquidation value
under the IBC also improved to 36.6 per cent at end-September 2025 as compared to 161.1
in 2024–25. The IBC remained the dominant per cent at end-September 2024.
Table IV.11: NPAs of SCBs Recovered through Various Channels
(Amount in ₹ crore)
Recovery 2023-24 2024-25 (P)
Channel
No. of cases Amount Amount Col. (4) as per No. of cases Amount Amount Col. (8) as per
referred involved recovered* cent of Col. (3) referred involved recovered* cent of Col. (7)
1 2 3 4 5 6 7 8 9
Lok Adalats 1,23,41,783 1,81,934 3,308 1.8 1,49,12,705 1,97,907 4,742 2.4
DRTs 30,806 79,414 13,527 17.0 34,430 1,29,516 12,363 9.5
SARFAESI Act 2,16,571 1,19,554 30,416 25.4 2,15,709 1,03,180 32,466 31.5
IBC @ 1,004 1,63,943 46,340 28.3 732 1,49,045 54,528 36.6
Total 1,25,90,164 5,44,845 93,591 17.2 1,51,63,576 5,79,648 1,04,099 18.0
P : Provisional. DRTs: Debt Recovery Tribunals.
* : Refers to the amount recovered during the given year, which could be with reference to the cases referred during the given year as well as during
earlier years.
@ : Cases admitted by National Company Law Tribunals (NCLTs).
Sources: Off-site returns, RBI, and Insolvency and Bankruptcy Board of India (IBBI).
11 Restructured standard advances ratio represents proportion of restructured standard advances in gross advances.
62COMMERCIAL BANKS
IV.35 Banks continued to clean up their 2025 from 27.6 per cent at end-March 2024. The
balance sheets through sale of NPAs to asset share of banks’ subscriptions to total security
reconstruction companies (ARCs). The ratio receipts decreased to 58.9 per cent at end-March
of asset sales to previous year’s GNPAs for 2025 from 59.1 per cent last year. The share of
SCBs increased during 2024-25, even as banks other investors (qualified institutional buyers)
continued to make recoveries through other continued to increase to 13.8 per cent from 13.1
channels (Chart IV.19a). In absolute terms, asset per cent in the previous year. During 2024-25,
sales to ARCs increased for PVBs and foreign the security receipts completely redeemed as per
banks, while it declined for PSBs during 2024- cent of the previous year’s outstanding security
25. The book value of assets acquired by ARCs receipts, an indicator of recovery through this
grew at a faster pace than their acquisition cost, mode, improved to 41.8 per cent from 38.2 per
resulting in a decline in the acquisition cost- cent during the previous year (Table IV.12).
to-book value ratio at end-March 2025 (Chart
4.5 Frauds in the Banking Sector
IV.19b).
IV.37 Frauds present multiple challenges by
IV.36 The outstanding book value of assets exposing financial institutions to reputational,
acquired by ARCs increased by 57.9 per cent, operational and business risks, while also
partly reflecting the impact of acquisition of weakening customer trust. During 2024-25,
Stressed Asset Stabilisation fund. Security based on date of reporting by banks, the total
receipts issued increased by 13.3 per cent number of frauds decreased. However, the
during 2024-25 as compared with an increase amount involved in frauds increased. This was
of 15.0 per cent in the previous year. The ratio of mainly due to re-examination and reporting
security receipts issued to book value of assets afresh of 122 fraud cases amounting to ₹18,336
acquired declined to 19.8 per cent at end-March crore after ensuring compliance with the
Chart IV.19: Stressed Asset Sale to ARCs
a. Sales to ARCs b. Stressed Assets' Book Value and Acquistion Cost
(Per cent of previous years's GNPAs) (At end-March)
(₹ lakh crore, left scale; per cent, right scale)
60 55.5
50
40 35.9
30
20
12.4
10
2.6
0
Sources: Quarterly statements submitted by ARCs and off-site returns (domestic operations), RBI.
63
22-1202 32-2202 42-3202 52-4202
16.6
Public sector banks Foreign banks Book value Acquisition cost to book value (RHS)
Private sector banks Scheduled commercial banks Acquisition cost
8.91
3.3
18 35
16
30
14
25
12
10 20
8 15
6
10
4
2 5
- 0
22-raM 22-nuJ 22-peS 22-ceD 32-raM 32-nuJ 32-peS 32-ceD 42-raM 42-nuJ 42-peS 42-ceD 52-raM 52-nuJ 52-peSReport on Trend and Progress of Banking in India 2024-25
Table IV.12: Details of Financial Assets judgement of the Hon’ble Supreme Court of
Securitised by Asset Reconstruction Companies
India dated March 27, 2023 (Table IV.13 and
(At end-March)
Appendix Table IV.7).12 Based on the date of
(Amount in ₹ crore)
2023 2024 2025 occurrence of frauds, during 2024-25, the share
1 2 3 4 of card / internet frauds in the total stood at 66.8
Number of reporting ARCs 28 27 27
per cent in terms of number of cases. In terms
1. Book Value of Assets Acquired 8,39,126 10,25,429 16,19,124
2. Security Receipt issued by 2,46,290 2,83,323 3,20,887 of amount, the share of advances-related frauds
ARCs
was 33.1 per cent (Table IV.14).
3. Security Receipts Subscribed to by
(a) Banks 1,49,253 1,67,517 1,89,025
(b) ARCs 49,519 57,283 64,656 IV.38 In 2024-25, PVBs accounted for 59.3
(c) Financial Institutional 19,383 21,495 22,778 per cent of the total number of frauds reported,
Investors
(d) Others (Qualified 28,135 37,027 44,427 while PSBs accounted for 70.7 per cent of the
Institutional Buyers)
amount involved (Charts IV.20 a and b). Within
4. Amount of Security Receipts 41,257 53,243 60,688
Completely Redeemed PVBs, card/internet-related frauds accounted
5. Amount of Security Receipts 65,610 84,938 1,06,875
for the largest share by number, while frauds
Partially Redeemed
6. Security Receipts Outstanding 1,39,422 1,45,140 1,53,323 related to advances constituted the largest
Notes: 1. Total as at end of quarter (cumulative/stock figures).
share by value in 2024-25. In contrast, PSBs
2. Constituent items may not add up to the total due to rounding
off. reported the highest share of frauds related to
Source: Quarterly statements submitted by ARCs.
Table IV.13: Frauds in Various Banking Operations Based on the Date of Reporting
(Amount in ₹ crore)
Area of Operation 2022-23 2023-24 2024-25 2024-25 (April-Sep) 2025-26 (April-Sep)
Number Amount Number Amount Number Amount Number Amount Number Amount
of frauds involved of frauds involved of frauds involved of frauds involved of frauds involved
1 2 3 4 5 6 7 8 9 10 11
Advances 3,989 15,065 4,113 9,160 7,934 31,911 3,518 15,521 4,255 17,501
Card/Internet 6,699 277 29,080 1,457 13,469 520 13,081 484 195 14
Cash 1,485 159 484 78 306 39 205 18 116 27
Cheques/DDs, etc. 118 25 127 42 122 74 49 54 51 8
Clearing Accounts, etc. 18 3 17 2 6 2 3 1 2 6
Deposits 652 259 2,002 240 1,207 521 934 363 222 131
Forex Transactions 13 12 19 38 23 16 6 1 21 124
Inter-Branch Accounts 3 0 29 10 14 26 3 0 19 19
Off-balance Sheet 13 280 10 199 8 270 - - 3 1
Others 472 422 171 35 790 1,392 587 127 208 3,684
Total 13,462 16,502 36,052 11,261 23,879 34,771 18,386 16,569 5,092 21,515
-: Nil/negligible.
Notes: 1. Refers to frauds of ₹1 lakh and above.
2. The figures reported by banks and financial institutions are subject to change based on revisions filed by them.
3. Frauds reported in a year could have occurred several years prior to year of reporting.
4. Amounts involved are as reported and do not reflect the amount of loss incurred. Depending on recoveries, the loss incurred gets reduced.
Further, the entire amount involved in loan accounts is not necessarily diverted.
5. As on September 30, 2025, 942 frauds amounting to ₹1,28,031 crore were withdrawn by banks and financial institutions due to non-
compliance with the principles of natural justice as per the judgment of the Hon’ble Supreme Court of India dated March 27, 2023.
6. Data pertaining to 2024-25 includes fraud classification in 122 cases amounting to ₹18,336 crore, pertaining to the previous financial years,
reported afresh during the financial year 2024-25 after re-examination and ensuring compliance with the judgement of the Hon’ble Supreme
Court of India, dated March 27, 2023.
7. Post issuance of revised Master Directions on Fraud Risk Management dated July 15, 2024, the banks are reporting only those payment system
related transactions which are concluded as fraud committed on bank(s).
Source: RBI.
12 These were removed from fraud classification during the previous financial years due to non-compliance with Principles of Natural
Justice.
64COMMERCIAL BANKS
Table IV.14: Frauds in Various Banking Operations Based on the Date of Occurrence
(Amount in ₹ crore)
Area of Operation Prior to 2022-23 2022-23 2023-24 2024-25 2025-26 (April - Sep)
Number Amount Number Amount Number Amount Number Amount Number Amount
of frauds involved of frauds involved of frauds involved of frauds involved of frauds involved
1 2 3 4 5 6 7 8 9 10 11
Advances 8,192 64,974 4,728 3,319 5,006 4,142 2,214 1,159 151 42
Card/Internet 1,902 191 11,994 628 27,663 1,192 7,756 252 128 4
Cash 584 61 1,057 121 473 72 219 40 58 8
Cheques/DDs, etc. 79 31 113 24 103 39 98 52 25 3
Clearing Accounts, etc. 12 4 15 1 13 2 1 1 2 6
Deposits 559 325 762 222 1,994 255 701 325 67 24
Forex Transactions 28 79 21 47 12 3 3 61 12 1
Inter-Branch Accounts 15 5 22 1 12 37 13 11 3 1
Off-balance Sheet 24 713 4 - 4 28 2 9 - -
Others 298 3,324 422 515 250 86 608 1,587 63 22
Total 11,693 69,707 19,138 4,878 35,530 5,856 11,615 3,497 509 111
-: Nil/negligible.
Notes: 1. Refers to frauds of ₹1 lakh and above.
2. The figures reported by banks and financial institutions are subject to change based on revisions filed by them.
3. Data based on date of occurrence may change for a period of time as frauds reported late but having occurred earlier would get added.
4. Data in the table pertain to cases reported from FY 2022-23 till September 30, 2025.
5. Amounts involved are as reported and do not reflect the amount of loss incurred. Depending on recoveries, the loss incurred gets reduced.
Further, the entire amount involved in loan accounts is not necessarily diverted.
6. As on on September 30, 2025, 942 frauds amounting to ₹1,28,031 crore were withdrawn by banks and financial institutions due to non-
compliance with the principles of natural justice as per the judgment of the Hon’ble Supreme Court of India dated March 27, 2023.
7. Data pertaining to 2024-25 includes fraud classification in 122 cases amounting to ₹18,336 crore, pertaining to the previous financial years,
reported afresh during the financial year 2024-25 after re-examination and ensuring compliance with the judgement of the Hon’ble Supreme
Court of India, dated March 27, 2023.
8. Post issuance of revised Master Directions on Fraud Risk Management dated July 15, 2024, the banks are reporting only those payment system
related transactions which are concluded as fraud committed on bank(s).
Source: RBI.
advances, both in terms of number of cases and The share of advances-related frauds, both in
the amount involved. The share of card/internet terms of number and amount, increased across
frauds declined across all bank groups in both all bank groups (except for PSBs in terms of
number and amount involved during 2024–25. amount), primarily due to a significant portion
Chart IV.20: Bank Group-wise Frauds
a. Number of Frauds b. Amount Involved
(Share in per cent) (Share in per cent)
5.6 0.2 0.5
6.1
29.0
Outer Circle:
Outer Circle: 28.6 2024-25
2024-25
Inner Circle: Inner Circle:
2022-23 2022-23
Middle Circle:
2023-24
Middle Circle:
59.3 2023-24 70.7
Public sector banks Foreign banks Public sector banks Foreign banks
Private sector banks Others Private sector banks Others
Notes: 1. Frauds based on date of reporting.
2. Others include financial institutions, small finance banks, payments banks and local area banks.
Source: RBI.
65Report on Trend and Progress of Banking in India 2024-25
Chart IV.21: Area of Operation-wise Frauds
a. Number of Frauds b. Amount Involved
(Share in per cent) (Share in per cent)
100
80
60
40
20
0
Public sector Private sector Foreign banks
banks banks
Advances Card/Internet
Cash Cheques/DDs, etc.
Deposits Others
DDs: Demand drafts.
Notes: 1. Frauds based on date of reporting.
2. Others include clearing accounts, forex transactions, inter-branch accounts, non-resident accounts, off-balance sheet accounts and others.
Source: RBI.
of reclassified frauds being associated with
advances (Charts IV.21 a and b).
4.6 Enforcement Actions
IV.39 Enforcement actions endeavour to
ensure regulatory compliance, achieve credible
deterrence and maintain stability and integrity of
the financial system. During 2024-25, instances
of penalty imposed by the Reserve Bank
increased across all regulated entities, except
PSBs, PBs and CICs.13 The penalty amount,
however, fell compared to last year across all
regulated entities, except Co-operative banks,
SFBs, RRBs and HFCs (Table IV.15).
5. Sectoral Bank Credit: Distribution and
Non-performing Assets
and personal loans in total bank credit increased
IV.40 Bank credit growth moderated during
at end-March 2025, while that of industry and
2024-25 reflecting deceleration across all
agriculture registered a decline. Within the
sectors, although it remained in double-digit.
The slowdown was most pronounced in the industrial sector, medium industries witnessed
personal loans segment, followed by services, an acceleration in credit growth, while micro
agriculture and industry. The shares of services and small, and large industries recorded a
13 Major reasons for the imposition of monetary penalties included, inter alia, non-compliance with the provisions on transfer of
unclaimed deposits to the Depositor Education and Awareness Fund; Exposure norms, Income Recognition and Asset Classification
norms; reporting information on CRILC platform; submission of credit information to credit information companies; customer
protection-limiting liability of customers in unauthorised electronic banking transactions; director related loans; know your
customer (KYC) directions, frauds classification and reporting by regulated entities among others.
66
32-2202 42-3202 52-4202 32-2202 42-3202 52-4202 32-2202 42-3202 52-4202
100
80
60
40
20
0
32-2202 42-3202 52-4202 32-2202 42-3202 52-4202 32-2202 42-3202 52-4202
Public sector Private sector Foreign banks
banks banks
Advances Card/Internet
Cash Cheques/DDs, etc.
Deposits Others
Table IV.15: Enforcement Actions
Regulated Entity 2023-24 2024-25
Instances of Total Instances of Total
Imposition Penalty Imposition Penalty
of Penalty (₹ crore) of Penalty (₹ crore)
1 2 3 4 5
Public Sector Banks 16 23.68 8 11.11
Private Sector Banks 12 24.90 15 14.80
Co-operative Banks 215 12.07 264 15.63
Foreign Banks 3 7.04 6 3.52
Payments Banks 1 5.39 1 0.27
Small Finance Banks 1 0.29 2 0.72
Regional Rural Banks 4 0.12 6 0.59
NBFCs/ARCs 22 11.53 37 7.29
HFCs 3 0.08 13 0.83
CICs 4 1.01 1 0.02
Total 281 86.11 353 54.78
NBFCs: Non-banking financial companies, ARCs: Asset reconstruction
companies, HFCs: Housing finance companies, CICs: Credit information
companies.
Source: RBI.COMMERCIAL BANKS
deceleration. In the services segment, growth financial resources to commercial sector
was mainly contributed by trade and other increased, driven by a pick up in flow from non-
services. Growth in housing loans remained bank resources. The increase in funding from
the principal sub-segment driving the growth non-bank sources during 2024-25 was largely
driven by buoyant domestic capital markets,
of personal loans at end-March 2025 (Table
reflected in higher equity issuances and
IV.16). At end-October 2025, bank credit
increased corporate bond placements amidst
growth accelerated across all sectors, except
easing market conditions, enhanced credit flow
agriculture as compared with a year ago.
by non-banking financial companies (NBFCs),
IV.41 During 2024-25, notwithstanding and a rebound in short-term external credit
a moderation in bank credit, total flow of (Charts IV.22 a and b).
Table IV.16: Sectoral Deployment of Gross Bank Credit by SCBs
(Amount in ₹ crore)
Sector Outstanding as on Per cent variation (y-o-y)
Mar-23 Mar-24 Oct-24 Mar-25 Oct-25 Mar-24 Mar-25 Oct-25
1 2 3 4 5 6 7 8 9
1. Agriculture and Allied Activities 17,26,410 20,71,251 22,05,579 22,87,060 24,02,610 20.0 10.4 8.9
2. Industry 33,66,406 36,82,393 38,12,250 39,85,660 41,92,700 9.4 8.2 10.0
(Micro and Small, Medium and Large)
2.1. Micro and Small 6,33,289 7,33,123 7,57,113 7,98,473 9,53,572 15.8 8.9 25.9
2.2. Medium 2,68,286 3,06,425 3,38,367 3,63,245 3,98,071 14.2 18.5 17.6
2.3. Large 24,64,831 26,42,844 27,16,770 28,23,942 28,41,057 7.2 6.9 4.6
3. Services, of which 37,18,805 45,47,237 47,29,329 50,93,565 53,45,246 22.3 12.0 13.0
3.1. Transport Operators 1,92,059 2,32,379 2,49,128 2,61,575 2,75,525 21.0 12.6 10.6
3.2. Computer Software 24,924 25,917 30,581 32,915 39,584 4.0 27.0 29.4
3.3. Tourism, Hotels and Restaurants 69,342 77,816 80,012 83,366 91,529 12.2 7.1 14.4
3.4. Trade 8,72,340 10,24,408 10,78,651 11,84,550 12,27,077 17.4 15.6 13.8
3.5. Commercial Real Estate 3,22,591 4,60,263 4,99,115 5,23,264 5,69,245 42.7 13.7 14.1
3.6. Non-Banking Financial Companies 13,42,539 15,23,054 15,35,999 16,35,102 17,03,567 13.4 7.4 10.9
(NBFCs)*
3.7 Other Services** 7,20,969 9,85,815 10,15,601 11,23,459 11,80,689 36.7 14.0 16.3
4. Personal Loans, of which 41,82,767 53,46,691 56,64,806 59,71,696 64,55,946 27.8 11.7 14.0
4.1. Consumer Durables 20,985 23,445 23,415 23,201 23,646 11.7 -1.0 1.0
4.2. Housing 19,91,164 27,18,712 28,71,841 30,10,477 31,87,475 36.5 10.7 11.0
(Including Priority Sector Housing)
4.3. Advances against Fixed Deposits 1,22,484 1,25,082 1,27,906 1,41,842 1,50,287 2.1 13.4 17.5
(Including FCNR (B), NRNR Deposits etc.)
4.4. Advances to Individuals against share, 7,633 8,492 9,060 10,080 10,006 11.3 18.7 10.4
bonds, etc.
4.5. Credit Card Outstanding 2,04,708 2,57,016 2,81,392 2,84,366 3,03,073 25.6 10.6 7.7
4.6. Education 96,482 1,19,380 1,30,308 1,37,456 1,49,442 23.7 15.1 14.7
4.7. Vehicle Loans 4,87,597 5,73,391 6,01,970 6,22,793 6,77,349 17.6 8.6 12.5
4.8. Loans against gold jewellery 89,370 93,301 1,47,724 2,06,284 3,37,580 4.4 121.1 128.5
5. Bank Credit 1,36,75,235 1,64,32,164 1,74,19,532 1,82,43,972 1,93,90,500 20.2 11.0 11.3
5.1 Non-food Credit 1,36,55,330 1,64,09,083 1,73,89,477 1,82,07,441 1,93,20,128 20.2 11.0 11.1
* : NBFCs include housing finance companies (HFCs), public financial institutions (PFIs), microfinance institutions (MFIs), NBFCs engaged in gold loan
and others.
** : “Other Services” include mutual funds (MFs), banking and finance other than NBFCs and MFs, and other services which are not indicated elsewhere
under services.
Notes: 1. Data are provisional. Bank credit, food credit and non-food credit data are based on fortnightly Section-42 return, which covers all scheduled
commercial banks (SCBs), while sectoral non-food credit data are based on sector-wise and industry-wise bank credit (SIBC) return, which
covers select banks accounting for about 95 per cent of total non-food credit extended by all SCBs pertaining to the last reporting Friday of the
month.
Source: RBI.
67Report on Trend and Progress of Banking in India 2024-25
Chart IV.22: Flow of Financial Resources to the Commercial Sector in India
a. Bank versus Non-Bank Flows b. Share in Total Flows
(₹ lakh crore) (Per cent)
40 35.1
30
18.0
20
10 17.1
0
Bank credit Non-bank flows Total flows
Notes: 1. Data for bank credit pertain to non-food bank credit based on Section-42 return.
2. Non-bank flows include flows from market instruments, non-bank financial institutions and foreign sources.
3. Market instruments include equities, corporate bonds, hybrid instruments and commercial papers; non-bank financial institutions include
non-banking financial companies, housing finance companies and all-India financial institutions (AIFIs); and foreign sources include foreign
direct investment, external commercial borrowings and short-term credit from abroad.
Sources: RBI; SEBI; NABARD; EXIM Bank; SIDBI; NHB; NaBFID; and RBI staff estimates.
68
12-0202 22-1202 32-2202 42-3202 52-4202
100 9.3
80 21.6
60 17.9
40
20 51.3
0
2020-21 2021-22 2022-23 2023-24 2024-25
Foreign sources Market instruments
Non-bank financial institutions Non-food bank credit
Chart IV.23: Sectoral Gross Non-Performing Assets Ratio
a. Agriculture b. Industry
(Per cent) (Per cent)
14
12
10
8 6.7
6 6.0
4 4.6
2
0
Public sector banks Private sector banks Public sector banks Private sector banks
Scheduled commercial banks Scheduled commercial banks
c. Services d. Retail
(Per cent) (Per cent)
Public sector banks Private sector banks Public sector banks Private sector banks
Scheduled commercial banks Scheduled commercial banks
Source: Off-site returns (domestic operations), RBI.
12-raM 22-raM 32-raM 42-raM 52-raM 52-peS
14
12
10
8
6
4
2.3
2 1.9
1.6
0
12-raM 22-raM 32-raM 42-raM 52-raM 52-peS
14
12
10
8
6
4
2.1
2 1.8
1.5
0
12-raM 22-raM 32-raM 42-raM 52-raM 52-peS
3
2
1.3
1.1
1
0.9
0
12-raM 22-raM 32-raM 42-raM 52-raM 52-peS
IV.42 Sectoral GNPA ratios of SCBs varied it was the lowest in case of retail loans. Asset
across sectors at end-March 2025. The agriculture quality of industry and services sector improved
sector recorded the highest GNPA ratio, while further at end-March 2025 for both PSBs andCOMMERCIAL BANKS
PVBs. PSBs, however, had higher GNPA ratio IV.24b). Asset quality improved across all
across all sectors as compared to PVBs, except industrial sub-sectors, except for beverages
in the retail segment. At end-September 2025, and tobacco. Leather and leather products
the asset quality of SCBs continued to improve industry continued to have the highest GNPA
across all sectors (Chart IV.23). ratio within industries, despite an improvement
(Chart IV.24c).
IV.43 Within retail loan segment, the GNPA
ratio of consumer durables was the highest, IV.44 At end-September 2025, housing loans
followed by credit card receivables and education and education loans witnessed further
loans. Asset quality of education loans and improvement in asset quality within the retail
housing loans improved, while it weakened for segment, while leather and leather products
consumer durables, credit card receivables and continued to have the highest GNPA ratio
vehicle loans at end-March 2025 (Chart IV.24a). within industry, despite some improvement.
In the services sector, asset quality improved In contrast, credit card receivables and post
across all sub-sectors, except for post and and telecommunication segment recorded an
telecommunication segment, which recorded improvement in asset quality at end-September
the highest GNPA ratio within the sector (Chart 2025 as compared to end-March 2025.
Chart IV.24: Gross Non-Performing Assets Ratio in Various Sub-Sectors
a. Retail Sector
(Per cent)
c. Industries
(Per cent)
Source: Off-site returns (domestic operations), RBI.
69
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Mar-24 Mar-25 Sep-25Report on Trend and Progress of Banking in India 2024-25
5.1 Credit to the MSME Sector Table IV.17: Credit Flow to the MSME Sector by
SCBs
IV.45 Credit growth of SCBs to micro, small
(Number of accounts in lakh, amount outstanding in ₹ crore)
and medium enterprises (MSME) sector 1 2 3 4 5
2022-23 2023-24 2024-25
decelerated in 2024-25, although it continued
PSBs No. of accounts 138.6 144.5 124.6
(-7.4) (4.2) (-13.7)
to remain in double digits. Among bank groups,
Amount outstanding 10,84,954 12,22,687 14,15,994
PSBs’ credit growth to MSME accelerated, while (13.5) (12.7) (15.8)
PVBs No. of accounts 58.0 89.4 79.8
it moderated for PVBs (Table IV.17). MSME (-35.2) (54.2) (-10.7)
Amount outstanding 10,60,173 13,35,238 14,84,158
credit as a proportion of SCBs’ total adjusted
(12.7) (25.9) (11.2)
net bank credit stood at 19.0 per cent at end- SFBs No. of accounts (-31 55 .0.1 ) (32 40 .8.4 ) (73 55 .8.9 )
March 2025 as compared with 19.3 per cent at Amount outstanding 29,661 67,086 91,002
(1.2) (126.2) (35.6)
end-March 2024. FBs No. of accounts 1.6 2.7 2.8
(-26.3) (72.5) (4.1)
Amount outstanding 85,349 1,00,261 1,17,808
5.2 Priority Sector Credit (0.0) (17.5) (17.5)
SCBs No. of accounts 213.3 257.0 243.2
(-19.4) (20.5) (-5.4)
IV.46 The priority sector lending of SCBs
Amount outstanding 22,60,135 27,25,272 31,08,962
increased by 12.5 per cent in 2024-25 as (12.4) (20.6) (14.1)
Notes: 1. Figures in parentheses indicate y-o-y growth rates.
compared with an increase of 16.9 per cent a 2. Data for SCBs excludes RRBs and PBs.
3. Constituent items may not add up to the total due to rounding off.
year ago. The moderation in growth was led by Source: RBI.
PVBs, while PSBs recorded a marginal increase. The total amount outstanding under Kisan
All bank groups managed to achieve their overall Credit Cards (KCCs) increased by 3.9 per cent
priority sector lending target (Table IV.18). during 2024-25 as compared with an increase
Table IV.18: Priority Sector Lending by Banks
(At end-March 2025)
(Amount in ₹ crore)
Item Target/ Public Sector Private Sector Foreign Small Finance Scheduled
sub-target Banks Banks Banks Banks Commercial Banks
(per cent Amount Per Amount Per Amount Per Amount Per Amount Per
of ANBC/ outstanding cent of outstanding cent of outstanding cent of outstanding cent of outstanding cent of
CEOBSE ANBC/ ANBC/ ANBC/ ANBC/ ANBC/
CEOBSE CEOBSE CEOBSE CEOBSE CEOBSE
1 2 3 4 5 6 7 8 9 10 11 12
Total Priority Sector 40/75* 35,91,872 42.3 27,06,678 44.3 2,64,854 41.8 1,63,079 84.3 67,26,484 43.6
Advances
of which
Agriculture 18.0 15,77,732 18.6 10,94,193 17.9 52,440 18.6 46,867 24.2 27,71,232 18.4
Small and Marginal 10.0 9,46,088 11.1 6,12,276 10.0 32,658 11.6 31,334 16.2 16,22,355 10.7
Farmers
Non-corporate 13.8 12,62,213 14.8 8,41,598 13.8 41,658 14.8 44,678 23.1 21,90,147 14.5
Individual Farmers#
Micro Enterprises 7.5 7,64,969 9.0 5,33,164 8.7 24,762 8.8 65,972 34.1 13,88,867 9.2
Weaker Sections 12.0 11,64,885 13.7 7,63,710 12.5 35,674 12.6 56,959 29.5 20,21,228 13.4
ANBC: Adjusted net bank credit; CEOBSE: Credit equivalent of off-balance sheet exposure.
*: Total priority sector lending target for small finance banks is 75 per cent. The target has been revised to 60 per cent effective from April 1, 2025.
#: Target for non-corporate farmers is based on the system-wide average of the last three years’ achievement. For 2024-25, the applicable system wide
average figure is 13.8 per cent.
Notes: 1. Amount outstanding and achievement percentage are based on the average achievement of banks for four quarters of the financial year.
2. Data for SCBs excludes RRBs and PBs.
3. For foreign banks having less than 20 branches, only the total PSL target of 40 per cent is applicable.
4. Data are provisional.
5. Constituent items may not add up to the total due to rounding off.
Source: RBI.
70COMMERCIAL BANKS
of 10.8 per cent a year ago. The share of SCBs
Chart IV.25: Trading Volume of Priority Sector
in total number and amount outstanding under Lending Certificates
(Amount in ₹ lakh crore)
KCCs was 37.5 per cent and 58.9 per cent,
respectively, at end-March 2025. Region-wise,
the southern region had the highest share of
amount outstanding under total KCCs, while
northern region had the highest share of SCBs’
amount outstanding under KCCs (Appendix
Table IV.8).
IV.47 The total trading volume of priority sector
lending certificates (PSLCs) increased by 36.4 per
cent in 2024-25, led by PSLC-General and micro
enterprises. Among the four PSLC categories,
the small and marginal farmers (SMF) category
Source: RBI.
recorded the highest trading volume. This
reflects the concentration of lending to SMF by PSLCs, reflecting their focused loan portfolio
a few specialised banks and shortfall of others and comparative advantage in rural lending
in achieving this sub-target through their direct (Chart IV.26a and b).
lending (Chart IV.25).
IV.49 The weighted average premium on PSLC-
IV.48 Private sector banks remained the largest Agriculture increased in 2024-25, following
buyers and sellers of PSLCs in 2024-25. The a steady decline in the previous three years,
share of PSBs as buyers of PSLCs increased, amidst a moderation in agriculture credit
while their share as sellers of PSLCs fell. RRBs growth. Premium for PSLC-SMF also increased
continued to be the second largest sellers of in 2024-25 and remained the highest amongst
71
5.1
3.2
6.4
8.3
5
4
3
2
1
0
2020-21 2021-22 2022-23 2023-24 2024-25
PSLC-agriculture PSLC-micro enterprises
PSLC-small and marginal farmers PSLC-general
Chart IV.26: Buyers and Sellers in Priority Sector Lending Certificates Market
a. Share of Buyers b. Share of Sellers
(Per cent) (Per cent)
100 3.4 100 2.0
9.5 20.2
80 11.4 80 1.2
60 60
38.6
57.9
40 40
20 36.6 20
18.4
0 0
2020-21 2021-22 2022-23 2023-24 2024-25 2020-21 2021-22 2022-23 2023-24 2024-25
Public sector banks Private sector banks Public sector banks Private sector banks
Foreign banks Regional rural banks Foreign banks Regional rural banks
Small finance banks Urban co-operative banks Small finance banks Urban co-operative banks
Local area banks Local area banks
Source: RBI.Report on Trend and Progress of Banking in India 2024-25
Table IV.19: Weighted Average Premium on Various Categories of PSLCs
(Per cent)
2020-21 2021-22 2022-23 2023-24 2024-25 2024-25 (Apr-Sep) 2025-26 (Apr-Sep)
1 2 3 4 5 6 7 8
PSLC-Agriculture 1.55 1.37 0.62 0.24 0.48 0.29 1.30
PSLC-Micro Enterprises 0.88 0.95 0.16 0.04 0.01 0.01 0.01
PSLC-Small and Marginal Farmers 1.74 2.01 1.68 1.74 1.95 1.94 2.77
PSLC-General 0.46 0.60 0.19 0.02 0.01 0.01 0.01
Source: RBI.
all the categories. Premiums on PSLC–Micro 2024-25 from 58.2 per cent in the previous year,
Enterprises and PSLC–General continued to as the non-priority sector NPAs fell. Agriculture
decline for the third consecutive year in 2024-25 sector accounted for the highest share of GNPAs
(Table IV.19). in the priority sector (Table IV.20).
IV.50 Continuing the improvement in asset IV.51 PSBs extended 42.3 per cent of their
quality of priority sector advances since 2021- adjusted net bank credit (ANBC)/ credit
22, the GNPA ratio declined to 4.0 per cent at equivalent of off-balance sheet exposure
end-March 2025 from 4.4 per cent a year ago. (CEOBSE) to the priority sector, however, the
Nonetheless, the share of priority sector in total sector accounted for 72.6 per cent of their total
GNPAs of SCBs increased to 64.7 per cent in NPAs. In comparison, priority sector exposure
Table IV.20: Sector-wise GNPAs of Banks
(At end-March)
(Amount in ₹ crore)
Bank Priority Sector Of which Non-priority Total
Group Sector NPAs
Agriculture Micro and Small Others
Enterprises
Amount Per cent* Amount Per cent* Amount Per cent* Amount Per cent* Amount Per cent* Amount Per cent*
1 2 3 4 5 6 7 8 9 10 11 12 13
PSBs
2024 2,09,837 65.4 1,07,647 33.6 78,592 24.5 23,598 7.4 1,10,903 34.6 3,20,740 100
2025 1,98,557 72.6 1,07,818 39.4 70,708 25.9 20,032 7.3 74,856 27.4 2,73,413 100
PVBs
2024 49,986 40.5 21,211 17.2 18,340 14.8 10,435 8.4 73,553 59.5 1,23,540 100
2025 63,520 48.7 31,050 23.8 21,041 16.1 11,429 8.8 66,856 51.3 1,30,376 100
FBs
2024 1,796 27.5 162 2.5 1,315 20.2 318 4.9 4,728 72.5 6,523 100
2025 1,659 31.2 147 2.8 1,235 23.2 277 5.2 3,662 68.8 5,321 100
SFBs
2024 4,030 72.1 1,878 33.6 1,179 21.1 973 17.4 1,561 27.9 5,590 100
2025 7,602 76.1 3,978 39.8 2,254 22.6 1,370 13.7 2,387 23.9 9,989 100
SCBs
2024 2,65,649 58.2 1,30,898 28.7 99,426 21.8 35,324 7.7 1,90,744 41.8 4,56,393 100
2025 2,71,338 64.7 1,42,992 34.1 95,238 22.7 33,108 7.9 1,47,761 35.3 4,19,099 100
*: Per cent of total NPAs.
Notes: 1. Constituent items may not add up to the total due to rounding off.
2. Data for SCBs excludes RRBs and PBs.
Source: Off-site returns (domestic operations), RBI.
72COMMERCIAL BANKS
of PVBs stood at 44.3 per cent, contributing capital markets accelerated, while it fell
48.7 per cent to their total NPAs. For SFBs, the marginally in case of real estate sector (Charts
share of priority sector lending in their ANBC/ IV.27 a and b).
CEOBSE declined to 84.3 per cent at end-March
5.4 Unsecured Lending
2025 from 90.6 per cent a year ago, while the
IV.54 Unsecured lending, characterised
proportion of priority sector NPAs in their total
by credit exposures not backed by tangible
NPAs increased to 76.1 per cent from 72.1 per
collateral, entails higher credit risk for banks
cent (Table IV.18 and Table IV.20).
in the event of default. At end-March 2025, the
5.3 Credit to Sensitive Sectors
share of unsecured loans in SCBs’ gross advances
IV.52 Banks’ exposure to the capital market declined for the second consecutive year to 24.5
and real estate is reckoned as sensitive in view per cent. This partly reflects the impact of the
of the risks inherent in asset price fluctuations. Reserve Bank’s risk containment measures
Based on annual accounts data14, at end-March
announced in November 2023. Foreign banks
2025, SCBs’ exposure to these sensitive sectors,
continued to have the highest share of unsecured
as a share of their total loans and advances at
advances, while the share of public and private
27.1 per cent remained broadly similar to the
sector banks has gradually converged in recent
previous year (Appendix Table IV.9).
years (Chart IV.28a). The mean, median as
IV.53 PVBs witnessed a steep deceleration well as dispersion of bank-wise exposure to
in growth of exposures to sensitive sectors unsecured loans was the highest amongst
during 2024-25, following a sharp increase in foreign banks. In 2024-25, the mean exposure
the previous year, reflecting the merger impact. of PVBs to unsecured loans declined, while the
On the contrary, PSBs’ exposure growth to median increased relative to the previous year.
Chart IV.27: Banks’ Exposure to Sensitive Sectors
(At end-March)
a. Real Estate b. Capital Market
(Y-o-y growth, per cent) (Y-o-y growth, per cent)
70
60
50
40
30
20 15.2
10 10.3
0 5.4
Source: Annual accounts of banks.
73
12-0202 22-1202 32-2202 42-3202 52-4202
40
29.1
30
25.5
20
18.4
10
0
-10
-20
Public sector banks Private sector banks
Scheduled commercial banks
12-0202 22-1202 32-2202 42-3202 52-4202
Public sector banks Private sector banks
Scheduled commercial banks
14 Statistical Tables Relating to Banks in India.Report on Trend and Progress of Banking in India 2024-25
Chart IV.28: Share of Unsecured Advances of Banks
a. Bank Group-wise Unsecured Advances b. Bank-wise Unsecured Advances
(Per cent of gross advances) (Per cent of gross advances)
70
60
50 51.9
40
30 24.5
20 23.8
10 23.4
0
Notes: 1. Data for SCBs exclude RRBs.
2. The whiskers of the boxplots are indicative of maximum and minimum values. A colored box shows distance between first and third
quartile. Horizontal line in each box shows the median, while ‘X’ shows the mean.
Source: Annual accounts of banks.
A similar, though less pronounced, pattern was Government’s shareholding of more than 75
observed for PSBs (Chart IV.28b). per cent at end-March 2025 (Chart IV.29a and
Appendix Table IV.10).15
6. Ownership Pattern
IV.56 PVBs have a more diversified ownership
IV.55 PSBs are majorly owned and controlled
pattern with a higher share of institutional and
by the Government of India. During 2024-25,
foreign investors (Chart IV.29b). The aggregate
six PSBs witnessed a decline in Government’s
shareholding as they raised equity funds from foreign investment limit is 74 per cent for PVBs
the capital market. Among them, five banks had and 20 per cent for PSBs.16
74
12-raM 22-raM 32-raM 42-raM 52-raM
100
90
80
70
60
50
40
30
20
10
0
Public sector Private sector Foreign
banks banks banks
Public sector banks Private sector banks
Foreign banks Scheduled commercial banks Mar-24 Mar-25
Chart IV.29: Ownership Pattern of Banks
a. Government's Shareholding in Public Sector Banks b. Shareholding Pattern in Public Sector Banks
(Per cent) and Private Sector Banks at end-March 2025
100 (Per cent)
75
50
25
0
Note: The whiskers of the boxplots are indicative of maximum and minimum values. A colored box shows distance between first quantile and third
quantile. Horizontal line in each box shows the median, while ‘X’ shows the mean.
Source: Off-site returns (domestic), RBI.
15 The Government of India vide its notification dated July 19, 2024, granted exemption up to August 1, 2026 to listed public sector
companies to meet the SEBI’s minimum public shareholding requirement of 25 per cent.
16 In case of SFBs, PBs, and LABs, the aggregate foreign investment limit is the same as applicable to PVBs.
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Mar-24 Mar-25 Non-ResidentCOMMERCIAL BANKS
7. Corporate Governance IV.59 Banks are required to constitute a Risk
IV.57 Good corporate governance is critical for Management Committee of Board (RMCB), with
efficiency in allocation of resources, protection a majority of non-executive directors. The Chair
of depositors’ and other stakeholders’ interests, of the Board may be a member of the RMCB
and preservation of financial stability. only if he/she has the requisite risk management
expertise. The proportion of PVBs in which the
7.1 Composition of Boards
Chair is not a member of the RMCB decreased
IV.58 Independent directors contribute to the
to 33 per cent at end-March 2025 from 38 per
Board’s deliberations by providing independent
cent at end-March 2024. In case of SFBs, the
judgement especially on issues of strategy,
proportion increased to 36 per cent at end-March
performance, risk management, resources,
2025 from 33 per cent at end-March 2024.
key appointments, and standard of conduct.
7.2 Executive Compensation
The Reserve Bank on April 26, 2021 issued
instructions for the composition of certain IV.60 To maintain balance between short-
committees of the Board; Chair and meetings term risk-taking and long-term stability, on
of the Board; age, tenure and remuneration November 4, 2019, the Reserve Bank issued
of directors; and appointment of the whole- revised guidelines on compensation of whole-
time directors for robust and transparent risk time directors/ chief executive officers/ material
management and decision-making in banks.17 risk takers and control function staff in banks.19
At end-March 2025, the average share of At end-March 2024, the average share of actual
independent directors in the Board was 63 per variable pay in total remuneration of Managing
cent for PVBs and 67 per cent for SFBs (Table Directors (MDs) & Chief Executive Officers
IV.21).18 (CEOs) increased to 46 per cent for PVBs, while it
Table IV.21: Independent Directors on the Board and its Committees
(At end-March)
(Share in per cent)
Bank Group Board Risk Management Committee Nomination and Remuneration Audit Committee of the
of Board (RMCB) Committee (NRC) Board (ACB)
2024 2025 2024 2025 2024 2025 2024 2025
1 2 3 4 5 6 7 8 9
Private Sector Banks 65 63 70 69 85 86 87 89
Small Finance Banks 67 67 73 75 79 80 82 84
Note: Figures in the table represent the average for a particular bank group.
Sources: Annual reports; and websites of banks.
17 These guidelines have since been consolidated under Reserve Bank of India (Governance) Directions, 2025, issued separately for
commercial banks, SFBs and other banks.
18 The instructions specify that at least half of the directors attending the meetings of the Board shall be independent directors; half of
the members attending the meeting of the Risk Management Committee of Board shall be independent directors, of which at least
one member shall have professional expertise/qualification in risk management; half of the members attending the meeting of the
Nomination and Remuneration Committee shall be independent directors, of which one shall be a member of the Risk Management
Committee; at least two-thirds of the members attending the meeting of the Audit Committee of the Board shall be independent
directors.
19 These guidelines have since been consolidated under Reserve Bank of India (Governance) Directions, 2025, issued separately for
commercial banks, SFBs and other banks. These guidelines require a substantial portion of compensation (at least 50 per cent) to
be variable and to be paid on the basis of individual, business-unit and firm-wide indicators that adequately measure performance.
The guidelines also stipulate that if the target variable pay is up to 200 per cent (above 200 per cent) of fixed pay, then minimum 50
per cent (67 per cent) of target variable pay shall be via non-cash components.
75Report on Trend and Progress of Banking in India 2024-25
Chart IV.30: Components of Total Remuneration of MDs and CEOs
(At end-March)
a. Share of Actual Variable Pay in Total Remuneration b. Share of Non-Cash Component in Actual Variable Pay
(Per cent) (Per cent)
50 46 60
54
40 38 50
41
40
30
30
20
20
10
10
0 0
Private sector Small finance Private sector Small finance
banks banks banks banks
2022 2023 2024 2022 2023 2024
Note: Figures in the charts represent the average for a particular bank group.
Source: RBI.
decreased to 38 per cent for SFBs (Chart IV.30a). strategy and business value optimisation. The
The average share of the non-cash component in number of foreign banks having representative
the actual variable pay of MDs & CEOs increased offices in India remained unchanged during the
for both PVBs and SFBs at end-March 2024 year (Table IV.22).
from a year ago (Chart IV.30b).
IV.62 Indian banks too maintained geographical
8. Foreign Banks’ Operations in India and presence abroad for conduct of their overseas
Overseas Operations of Indian Banks operations through branches, subsidiaries,
IV.61 At end-March 2025, the number of foreign representative offices, joint venture banks, and
banks operating through branch/ wholly-owned other offices (Chart IV.31). PSBs had a wider
subsidiary mode in India declined to 44, following
the exit of one bank during the year. The change
Chart IV.31: Overseas Operations of Indian Banks
(Number at end-March)
in number of branches of foreign banks reflect
140
their continuous re-alignment of global business
120 112
100
Table IV.22: Operations of Foreign Banks in India
(At end-March) 80
Period Foreign banks operating through Foreign 60
branch/ wholly-owned banks having
subsidiary mode representative 40 37 34
No. of Banks Branches# offices 24
1 2 3 4 20 5
2022 45 861 34
0
2023 44 782 33
2024 45 780 31
2025 44 775 31
#: Including branches of two foreign banks, viz., SBM Bank (India)
Limited and DBS Bank (India) Limited which are operating through
wholly-owned subsidiary mode. Note: Data exclude IFSC banking unit (IBU) of Indian banks in GIFT City.
Source: RBI. Source: RBI.
76
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2022 2025COMMERCIAL BANKS
overseas presence than their private sector the remaining 2.4 per cent. In volume terms,
counterparts (Appendix Table IV.11). growth in digital payments was much higher
at 35 per cent amidst increasing usage of
9. Payment Systems
digital methods for small value payments.
IV.63 India’s payment systems have
Consequently, the average value of retail digital
witnessed rapid strides in terms of acceptance
payments decreased to ₹3,830 during 2024-25
infrastructure, availability, and user adoption,
from ₹4,382 during 2023-24 (Chart IV.32).
and are playing an integral role in supporting
IV.65 The unified payments interface
economic activity and fostering financial
(UPI) accounted for a majority share in the
inclusion. Particularly, digital payment products
volume of transactions, while real time gross
have grown manifold aided by technological
settlement (RTGS), which facilitates high value
advancements, sound and supportive regulatory
transactions, accounted for the largest share
framework, and policy initiatives at promoting
in value term. Furthermore, while the usage
cashless transactions. In line with Payments
of debit cards has declined, payments through
Vision 2025, the Reserve Bank’s policy initiatives
credit cards continued to increase in recent
focus on providing safe, secure, fast, convenient,
periods (Table IV.23).
accessible, and affordable e-payment options to
IV.66 The Reserve Bank of India-Digital
every user.
Payments Index (RBI-DPI), launched in January
9.1 Digital Payments
2021 and computed semi-annually, captures
IV.64 During 2024-25, digital payments grew by the extent of digitalisation of payments across
17.9 per cent in value terms, accounting for 97.6 the country. The index comprises of five broad
per cent of India’s total payments. In contrast, parameters: payment enablers; payment
payments through paper-based instruments infrastructure – demand-side factors; payment
(cheques) declined during the year, representing infrastructure – supply-side factors; payment
Chart IV.32: Transaction Volume and Average Value of Retail Digital Payments
(Crore, left scale; ₹, right scale)
3,000 12,000
2,500 10,000
2,000 8,000
1,500 6,000
1,000 4,000
500 2,000
0 0
Volume Average Value Per Transaction (RHS)
Note: Retail digital payments include AePS fund transfers, APBS, IMPS, NACH, NEFT, UPI, BHIM Aadhar Pay, NETC, card payments and prepaid
payment instruments.
Source: RBI.
77
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Table IV.23: Payment Systems Indicators
Item Volume (lakh) Value (₹ crore)
2022-23 2023-24 2024-25 2022-23 2023-24 2024-25
1 2 3 4 5 6 7
1. Large Value Credit Transfers – RTGS 2,426 2,700 3,025 14,99,46,286 17,08,86,670 20,13,87,682
2. Credit Transfers 9,83,621 14,86,107 20,61,015 5,50,09,620 6,75,42,859 7,98,81,976
2.1 AePS (Fund Transfers) 6 4 4 356 261 190
2.2 APBS 17,834 25,888 32,964 2,47,535 3,90,743 5,54,034
2.3 ECS Credit 0 0 0 0 0 0
2.4 IMPS 56,533 60,053 56,250 55,85,441 64,95,652 71,39,110
2.5 NACH Credit 19,257 16,227 16,939 15,41,815 15,25,104 16,70,223
2.6 NEFT 52,847 72,640 96,198 3,37,19,541 3,91,36,014 4,44,61,464
2.7 UPI 8,37,144 13,11,295 18,58,660 1,39,14,932 1,99,95,086 2,60,56,955
3. Debit Transfers and Direct Debits 15,343 18,250 21,660 12,89,611 16,87,658 22,08,583
3.1 BHIM Aadhaar Pay 214 194 230 6,791 6,112 6,907
3.2 ECS Debit 0 0 0 0 0 0
3.3 NACH Debit 13,503 16,426 19,762 12,80,219 16,78,769 21,99,327
3.4 NETC (linked to bank accounts) 1,626 1,629 1,668 2,601 2,777 2,349
4. Card Payments 63,325 58,470 63,861 21,52,245 24,23,563 26,05,110
4.1 Credit Cards 29,145 35,610 47,741 14,32,255 18,31,134 21,09,197
4.2 Debit Cards 34,179 22,860 16,120 7,19,989 5,92,429 4,95,914
5. Prepaid Payment Instruments 74,667 78,775 70,254 2,87,111 2,83,048 2,16,751
6. Paper-based Instruments 7,109 6,632 6,095 71,72,904 72,12,333 71,13,350
Total Digital Payments (1+2+3+4+5) 11,39,382 16,44,302 22,19,815 20,86,84,872 24,28,23,799 28,63,00,103
Total Retail Payments (2+3+4+5+6) 11,44,065 16,48,234 22,22,885 6,59,11,490 7,91,49,461 9,20,25,771
Total Payments (1+2+3+4+5+6) 11,46,491 16,50,934 22,25,910 21,58,57,776 25,00,36,131 29,34,13,453
AePS: Aadhaar-enabled Payment System, APBS: Aadhaar Payment Bridge System, BHIM: Bharat Interface for Money, ECS: Electronic Clearance Service,
IMPS: Immediate Payment Service, NACH: National Automated Clearing House, NEFT: National Electronic Funds Transfer, NETC: National Electronic Toll
Collection, RTGS: Real Time Gross Settlement, UPI: Unified Payments Interface.
Note: Components may not add up to total due to rounding off.
Source: RBI.
performance; and consumer centricity. The from 445.5 a year ago, driven by significant
index value for March 2025 increased to 493.2 growth in payment infrastructure and payment
performance across the country (Chart IV.33).
Chart IV.33: Digital Payments Index
Index (March 2018=100)
9.2 ATMs
Mar-25 493.2
Sep-24 465.3 IV.67 During 2024-25, the total number of
Mar-24 445.5
automated teller machines (ATMs) declined
Sep-23 418.8
moderately, driven by reduction in off-site ATMs
Mar-23 395.6
Sep-22 377.5 even while on-site ATMs increased. Increase
Mar-22 349.3
in digitalisation of payments has reduced the
Sep-21 304.1
Mar-21 270.6 customers’ requirement of transacting with
Sep-20 217.7 ATMs. PSBs accounted for the highest share in
Mar-20 207.8
the total number of ATMs, followed by PVBs, and
Sep-19 173.5
Mar-19 153.5 white label ATMs – those owned and operated
Mar-18 100.0
by non-bank entities, at end-March 2025 (Table
Source: RBI.
IV.24 and Appendix Table IV.12).
78COMMERCIAL BANKS
Table IV.24: Number of ATMs*
(At end-March)
Bank Group On-site ATMs Off-site ATMs Total ATMs
2024 2025 2024 2025 2024 (2+4) 2025 (3+5)
1 2 3 4 5 6 7
Public Sector Banks 77,033 79,865 57,661 53,679 1,34,694 1,33,544
Private Sector Banks 45,438 47,713 34,446 29,404 79,884 77,117
Foreign Banks 603 587 566 406 1,169 993
Small Finance Banks 3,042 3,158 26 29 3,068 3,187
Payments Banks 0 0 0 0 0 0
SCBs 1,26,116 1,31,323 92,699 83,518 2,18,815 2,14,841
White Label ATMs 0 0 34,602 36,216 34,602 36,216
Total 1,26,116 1,31,323 1,27,301 1,19,734 2,53,417 2,51,057
* Includes cash recycler machines.
Note: Data does not include ATMs of regional rural banks, local area banks, and co-operative banks.
Source: RBI.
IV.68 PSBs had a more even distribution of 10. Technology Adoption
ATMs across population groups, while the IV.69 The Reserve Bank has been working
presence of ATMs of other bank groups was to create an enabling regulatory environment
for fostering innovation and ensuring financial
towards metropolitan, urban, and semi-urban
system integrity. Among various emerging
centres. In contrast, 79.4 per cent of the total
technologies, artificial intelligence (AI) is a
white label ATMs were in rural and semi-urban
transformational technology with potential for
centres at end-March 2025 (Table IV.25). improving customer engagement, unlocking
new forms of credit assessment and delivery,
strengthening risk management and fraud
Table IV.25: Population Group-wise Distribution
detection. Towards this end, the Reserve
of ATMs of Bank Groups*
Bank’s Framework for Responsible and Ethical
(At end-March 2025)
Enablement of AI (FREE-AI) seeks to encourage
Bank Group Rural Semi- Urban Metropol- Total
urban itan innovation in the financial sector while balancing
1 2 3 4 5 6
risk mitigation. The Report on FREE-AI was
Public Sector Banks 28,481 39,630 33,589 31,844 1,33,544
(21.3) (29.7) (25.2) (23.8) (100.0) placed on the RBI website on August 13, 2025.
Private Sector Banks 7,569 20,811 18,945 29,792 77,117
(9.8) (27.0) (24.6) (38.6) (100.0) IV.70 A recent survey conducted by the Reserve
Foreign Banks 82 282 265 364 993
Bank indicates that banks are increasingly
(8.3) (28.4) (26.7) (36.7) (100.0)
Small Finance Banks 293 992 953 949 3,187 viewing innovation as a structured component
(9.2) (31.1) (29.9) (29.8) (100.0)
of long-term digital modernisation rather than
Payments Banks 0 0 0 0 0
(0.0) (0.0) (0.0) (0.0) (0.0) an episodic experimentation (Box IV.1).
SCBs 36,425 61,715 53,752 62,9492,14,841
(17.0) (28.7) (25.0) (29.3) (100.0) 11. Consumer Protection
White Label ATMs 16,578 12,164 4,733 2,741 36,216
(45.8) (33.6) (13.1) (7.6) (100.0) IV.71 Consumer protection is one of the key
*: Includes cash recycler machines.
priorities of the Reserve Bank. The Reserve
Notes: 1. Figures in parentheses indicate percentage share of population
groups in total ATMs for bank groups.
Bank promotes consumer education and
2. Components may not add up to total due to rounding off.
Source: RBI. protection by monitoring the internal grievance
79Report on Trend and Progress of Banking in India 2024-25
Box IV.1: Evolving Technology and Innovation Priorities of Indian Banks20
To enhance understanding of how Indian banks are shaping, delivered through outsourcing/ third party arrangements
sequencing and operationalising technological modernisation has also increased, suggesting expanding role for specialised
within a prudentially regulated environment, the Reserve Bank external providers (Chart IV.1.1b). Predominant technologies
undertook a survey during 2025. The sample included nine
adopted through third parties include cloud-hosted platforms,
PSBs, 16 PVBs and six SFBs, accounting for around 66 per
vendor-supported cybersecurity solutions and modular digital
cent of total bank credit as on October 31, 2025.
platforms.
The surveyed banks are broadly aligned in recognising
There is a substantial convergence on areas of innovation and
that innovation is central to sustaining competitiveness,
strengthening resilience and enhancing customer experience. A transformative technologies receiving emphasis by banks.
number of banks view innovation as a catalyst for technology- Cloud services, enterprise data and analytics platforms, AI/ML
enabled process re-engineering to deliver improved efficiency, applications, and cybersecurity enhancements are increasingly
service quality and risk management. Several banks view shaping banks’ longer-term technology strategies. Application
innovation as a capability-enhancing exercise for strengthening programming interface (API)-based architectures and banking-
analytical depth, improving decision-making and enabling as-a-service models feature prominently in the survey
more agile service delivery, while others view innovation
responses, while robotic process automation, digital identity
as an investment in strengthening the digital foundations
systems, and distributed ledger technologies were also cited in
for cybersecurity, operational resilience, and regulatory
several responses, though with relatively less emphasis.
compliance.
Overall, the survey findings highlight an increase in innovation-
Technology spending directed specifically towards innovative
or transformative capabilities has increased significantly related spending across bank groups, suggesting that digital
across all bank groups between 2019-20 to 2023-24 transformation has become a core strategic and operational
(Chart IV.1.1a). The share of innovation-related technology priority rather than a peripheral initiative.
Chart IV.1.1: Banks’ Spending on Innovation
a. Share of IT Budget Allocated to Innovation* b. Share of IT Budget Allocated to Outsourced Innovation
(Per cent) (Per cent)
16 14.8 15.1 16 14.4
14 14
12 12
9.9
10 10
8.1 7.6
8 8
6.1 5.7 5.3
6 6
4 3.2 4 3.3
2.1
2 2
0 0
Public sector Private sector Small finance Public sector Private sector Small finance
banks banks banks banks banks banks
2019-20 2020-21 2021-22 2019-20 2020-21 2021-22
2022-23 2023-24 2022-23 2023-24
*: Includes both in-house and outsourced innovation.
Source: RBI.
redressal mechanism in its regulated entities, Ombudsman, Consumer Education and
and administering the alternate grievance Protection Cells and Consumer Education and
redress mechanism – comprising the RBI Protection Department.21 As part of its customer-
20 The analysis is based on inputs provided by surveyed banks and should not be interpreted as system-wide trends.
21 The RBI Ombudsman functions under the framework of Reserve Bank-Integrated Ombudsman Scheme (RB-IOS), 2021, enabling
the customers of regulated entities such as banks, non-banking financial companies, payment system participants and credit
information companies to register their complaints at one centralised reference point. The Consumer Education and Protection
Cells (CEPCs) take up complaints against regulated entities not falling under the ambit of RB-IOS, 2021. Consumer Education and
Protection Department (CEPD) provides assistance to the Appellate Authority under the RB-IOS and processes the appeal cases.
80COMMERCIAL BANKS
centric approach, state co-operative banks and Table IV.26: Number of Complaints Received by
Offices of the RBI Ombudsman: Category-wise
central co-operative banks were brought under
the ambit of the Reserve Bank – Integrated Item 2022-23 2023-24 2024-25
1 2 3 4
Ombudsman Scheme, 2021, effective November
Loans and Advances 59,762 85,281 86,670
1, 2025. Credit Cards 34,151 42,329 50,811
Mobile/ Electronic Banking 43,167 57,242 49,951
11.1 Grievance Redressal Deposit Accounts 34,481 46,358 49,913
Others 22,587 24,355 30,760
ATM/ Debit Cards 29,929 25,231 18,082
IV.72 During 2024-25, the Offices of the RBI
Remittances 2,940 4,101 3,702
Ombudsman (ORBIOs) received 2.96 lakh Para-banking 2,782 4,380 3,322
Pension Payments 4,380 4,108 2,719
complaints22, an increase of 0.8 per cent over
Notes and Coins 511 539 391
the previous year. Majority of the complaints Total 2,34,690 2,93,924 2,96,321
Source: RBI.
at ORBIOs was received from metropolitan
and urban centres (Chart IV.34a). Complaints
cards category witnessed the highest increase
against PVBs and PSBs accounted for 72.3 per
in the number of complaints during 2024-25
cent of the total complaints received by ORBIOs
(Table IV.26).
during the year (Chart IV.34b).
IV.74 Among banks, PVBs accounted for the
IV.73 Complaints relating to loans and highest share in complaints related to loans
advances, credit cards, mobile/ internet and advances and credit cards, while a majority
banking, and deposit accounts contributed of complaints relating to mobile/electronic
to around four-fifths of the total complaints banking, deposit accounts, and ATM/debit cards
received by ORBIOs during 2024-25. The credit were against PSBs (Chart IV.35).
Chart IV.34: Distribution of Complaints Received at ORBIOs
a. Population Group-wise b. Entity Type-wise
(Share in per cent) (Share in per cent)
10.0 20.6
34.8
2.5
18.5
1.9
2023-24
45.9 2.6 2024-25
2023-24
2024-25
37.5
Public sector banks Private sector banks
25.6
Foreign banks Small finance banks
Metropolitan Urban Semi-urban Rural Payments banks Others
Note: Others include regional rural banks, local area banks, urban co-operative banks, NBFCs, credit information companies, and payment system
participants.
Source: RBI.
22 Excluding complaints closed at Centralised Receipt and Processing Centre (CRPC) and complaints auto-closed by Complaint
Management System (CMS) as non-maintainable complaints.
81Report on Trend and Progress of Banking in India 2024-25
11.2 Deposit Insurance
Chart IV.35: Entity Type-wise Break-up of Major
Complaint Categories: 2024-25
(Per cent) IV.76 Deposit insurance is an important
Loans and advances feature of the financial safety-net system as
it bolsters public confidence in the banking
Credit cards
system. In India, the Deposit Insurance and
Mobile/ electronic banking
Credit Guarantee Corporation (DICGC), a
Deposit accounts
wholly owned subsidiary of the Reserve Bank,
ATM/ debit cards
administers deposit insurance covering all
Others@ commercial banks, including RRBs, LABs, and
0 10 20 30 40 50 60 70 80 90 100 co-operative banks. At end-March 2025, DICGC
Public sector banks Private sector banks Foreign banks
extended insurance to 1,982 banks, including
Small finance banks Payments banks Others*
@: Include remittances, para-banking, pension payments, notes and 139 commercial banks and 1,843 co-operative
coins, and others.
*: Include regional rural banks, local area banks, urban co-operative banks, with the deposit insurance coverage limit
banks, NBFCs, credit information companies, and payment system
participants.
of ₹5 lakh per depositor (Table IV.27).
Source: RBI.
IV.77 The insurance coverage ratio in terms of
IV.75 The ORBIOs disposed of a total of 2.91
the number of fully covered deposit accounts
lakh complaints out of 3.12 lakh handled
(i.e., accounts with deposit balance up to ₹5
complaints, maintaining a disposal rate of 93.1
lakh) was 97.6 per cent at end-March 2025.
per cent during 2024-25.23
In terms of value of deposits, the coverage as
Table IV.27: Bank Group-wise Insured Deposits
(Amount in ₹ crore)
Bank Group As on March 31, 2024 As on March 31, 2025
No. of Insured Assessable IDR No. of Insured Assessable IDR
Insured Deposits Deposits {(3) / Insured Deposits Deposits {(7) /
Banks (4)} Banks (8)}
1 2 3 4 5 6 7 8 9
I. Commercial Banks (i to vii) 140 86,66,416 2,06,73,077 41.9 139 92,39,260 2,28,57,103 40.4
i. Public Sector Banks 12 56,47,846 1,15,76,001 48.8 12 59,53,830 1,26,11,152 47.2
ii. Private Sector Banks 21 23,63,912 72,35,902 32.7 21 25,71,103 81,93,195 31.4
iii. Foreign Banks 44 50,568 10,08,506 5.0 44 52,084 10,91,743 4.8
iv. Small Finance Banks 12 89,532 2,15,426 41.6 11 1,07,719 2,70,601 39.8
v. Payments Banks 6 16,794 16,937 99.2 6 26,142 26,294 99.4
vi. Regional Rural Banks 43 4,96,827 6,19,010 80.3 43 5,27,364 6,62,709 79.6
vii. Local Area Banks 2 937 1,295 72.4 2 1,018 1,409 72.2
II. Co-operative Banks (i to iii) 1,857 7,46,290 11,79,084 63.3 1,843 7,72,805 12,48,939 61.9
i. Urban Co-operative Banks 1,472 3,71,846 5,56,962 66.8 1,457 3,80,142 5,84,450 65.0
ii. State Co-operative Banks 33 64,202 1,48,080 43.4 34 66,285 1,57,076 42.2
iii. District Central Co-operative Banks 352 3,10,242 4,74,041 65.4 352 3,26,378 5,07,412 64.3
Total (I+II) 1,997 94,12,705 2,18,52,160 43.1 1,982 1,00,12,065 2,41,06,042 41.5
IDR: Insured Deposits Ratio. It is the ratio of insured deposits to total assessable deposits in per cent.
Note: Components may not add up to total due to rounding off.
Source: DICGC.
23 Complaints handled during the year include complaints received during the year, complaints brought forward from the previous
year, and complaints received by email / from CEPCs before the start of the year but registered / assigned to ORBIOs on or after start
of the year.
82COMMERCIAL BANKS
measured by insured deposits ratio decreased Bank’s policy initiatives along with technology-
to 41.5 per cent at end-March 2025 from 43.1 driven innovations have played a pivotal role
per cent a year ago. in empowering the underserved population by
ensuring equitable access to financial services.
IV.78 The deposit insurance fund is constituted
India has complemented digitalisation with
with DICGC to settle the claims of insured
expansion of bank branch network and ATMs in
deposits in the event of (i) imposition of all-
furthering inclusion. This contrasts with most
inclusive directions on bank by the Reserve
other countries where digitalisation is leading
Bank24; (ii) liquidation of bank; and (iii) merger/
to a decline in traditional channels of accessing
amalgamation of bank, if the scheme requires
financial services. Furthermore, the penetration
payment to depositors in terms of DICGC Act,
of bank branches in India is higher than most
1961. During 2024-25, DICGC settled claims
other EMDEs, while availability of ATMs per
amounting to ₹476 crore through the fund and
capita remains comparatively low in India
made a total recovery of claims amounting to
(Charts IV.36a and b).
₹1,309 crore.25 At end-March 2025, the balance
in deposit insurance fund at ₹2.29 lakh crore 12.1 Financial Inclusion Plans
recorded a y-o-y growth of 15.2 per cent,
IV.81 Financial Inclusion Plans (FIPs) capture
while insured deposits rose by 6.4 per cent.
banks’ achievements on parameters such as
Consequently, the reserve ratio – the ratio of
the number of banking outlets (branches),
deposit insurance fund to insured deposits –
business correspondents (BCs) outlets, basic
improved to 2.29 per cent at end-March 2025
savings bank deposit accounts (BSBDAs),
from 2.11 per cent a year ago.
overdraft facilities availed in these accounts,
IV.79 Since inception, DICGC levied a flat rate
transactions in Kisan Credit Cards and
premium on banks to fund the deposit insurance
General Credit Cards and transactions through
scheme, with the current applicable premium
the Business Correspondents - Information
rate at 12 paise per ₹100 of assessable deposits.
and Communication Technology channel.26
In December 2025, the Reserve Bank approved
The number of BSBDAs increased by 2.6
the risk-based deposit insurance framework for
per cent to 72.4 crore at end-March 2025,
banks to incentivise sound risk management
while the aggregate balance in these accounts
and promote financial stability.
increased by 9.5 per cent to 3.3 lakh crore.
12. Financial Inclusion Further, a majority of BSBDAs continues to be
IV.80 Financial inclusion is important for channelised through the BC model, indicating
fostering inclusive and sustainable economic their effectiveness at the grassroots level
growth. The Government and the Reserve (Table IV.28).
24 The Reserve Bank imposes all-inclusive directions (AID) under Section 35A of Banking Regulation Act, 1949 and advises bank placed
under AID of the restrictions imposed on deposit/withdrawals with an endorsement to the DICGC, where the bank is registered for
deposit insurance.
25 DICGC has the mandate to recover the insurance pay-outs under Section 21 of DICGC Act, 1961 and rules framed thereunder.
26 In order to meet the need to capture detailed and disaggregated financial inclusion data across the banking system, the coverage of
Monitoring Progress of Financial Inclusion (MPFI) return has been extended to all the banks (except Tier 1 & 2 urban co-operative
banks). Subsequently, FIP return has been discontinued for submission by the banks from FY 2025-26.
83Report on Trend and Progress of Banking in India 2024-25
Chart IV.36: Progress of Financial Inclusion in Select Countries
a. Number of Commercial Bank Branches b. Number of ATMs
(Per 1,00,000 Adults) (Per 1,00,000 Adults)
80
70
60
50
40
30
20
10
0
2024 2015 2024 2015
Notes: 1. 2024 commercial bank branch data for Germany pertains to 2023.
2. 2024 ATM data for Sweden, Germany and France pertains to 2023.
Source: Financial Access Survey, 2025, IMF.
12.2 Financial Inclusion Index inclusion in the country. It captures data on 97
IV.82 The Reserve Bank’s Financial Inclusion indicators pertaining to banking, investments,
(FI) Index tracks the progress of financial insurance, postal, and pension sector on three
Table IV.28: Progress in Financial Inclusion Plan
(At end-March)
Item 2015 2020 2024 2025 (P)
1 2 3 4 5
Banking Outreach
1. Banking Outlets in Villages - Branches 49,571 54,561 54,198 56,829
2. BC Outlets in Villages with Population > 2,000 90,877 1,49,106 12,66,756 10,38,208
3. BC Outlets in Villages with Population < 2,000 4,08,713 3,92,069 2,80,922 2,72,764
4. Total BC Outlets in Villages 4,99,590 5,41,175 15,47,678 13,10,972
5. Urban Locations Covered Through BCs 96,847 6,35,046 3,06,658 3,09,182
Basic Saving Bank Deposits Account (BSBDA)
6. BSBDA - Through Branches (No. in lakh) 2,103 2,616 2,768 2,751
7. BSBDA - Through Branches (Amt. in ₹ crore) 36,498 95,831 1,46,306 1,54,028
8. BSBDA - Through BCs (No. in lakh) 1,878 3,388 4,290 4,491
9. BSBDA - Through BCs (Amt. in ₹ crore) 7,457 72,581 1,53,489 1,74,243
10. BSBDA - Total (No. in lakh) 3,981 6,004 7,059 7,242
11. BSBDA - Total (Amt. in ₹ crore) 43,955 1,68,412 2,99,796 3,28,271
12. OD Facility Availed in BSBDAs (No. in lakh) 76 64 48 45
13. OD Facility Availed in BSBDAs (Amt. in ₹ crore) 1,991 529 564 564
Kisan Credit Card (KCC) and General Credit Card (GCC)
14. KCC - Total (No. in lakh) 426 475 515 501
15. KCC - Total (Amt. in ₹ crore) 4,38,229 6,39,069 8,47,238 8,83,682
16. GCC - Total (No. in lakh) 92 202 23 21
17. GCC - Total (Amt. in ₹ crore) 1,31,160 1,94,048 34,340 37,563
Business Correspondents
18. ICT-A/Cs-BC-Total Transactions (No. in lakh) # 4,770 32,318 36,390 39,676
19. ICT-A/Cs-BC-Total Transactions (Amt. in ₹ crore) # 85,980 8,70,643 13,11,078 14,46,451
P: Provisional, BC: Business Correspondent, OD: Overdraft, ICT: Information and Communication Technology.
#: Transactions during the financial year.
Source: Financial Inclusion Plan returns submitted by PSBs, PVBs and RRBs.
84
eropagniS ynamreG nedewS ailartsuA adanaC setatS
detinU
ecnarF ylatI niapS napaJ manteiV aisyalaM acirfA
htuoS
dnaliahT senippilihP anihC aisenodnI ocixeM aidnI lizarB aissuR
250
200
150
100
50
0
Advanced economies Emerging market and
developing economies
nedewS eropagniS ynamreG ecnarF modgniK
detinU
niapS ylatI ailartsuA napaJ adanaC aidnI manteiV senippilihP aisenodnI acirfA
htuoS
aisyalaM anihC ocixeM lizarB dnaliahT aissuR
Advanced economies Emerging market and
developing economiesCOMMERCIAL BANKS
dimensions – access, usage and quality. These
dimensions are represented through three sub-
indices, viz., FI-access, FI-usage and FI-quality.
The composite FI-Index value rose to 67.0 in
March 2025 from 64.2 in March 2024 with all
sub-indices registering an increase. Growth
was mainly contributed by usage and quality
dimension, reflecting deepening of financial
inclusion and sustained financial literacy
initiatives (Chart IV.37).
12.3 Pradhan Mantri Jan Dhan Yojana
IV.83 Since its launch by the Government of
India in 2014, the Pradhan Mantri Jan Dhan
Yojana (PMJDY) has integrated unbanked
individuals into the formal financial system and
has increased by more than four times during
fostered financial inclusion. A large number
March 2015 to March 2025 (Chart IV.38b).
of accounts opened under the PMJDY are in
During July-October 2025, banks participated
rural and semi-urban areas and for females. At
in a country-wide campaign for saturation of
end-March 2025, the total number of PMJDY
financial inclusion schemes, including conduct
accounts reached 55.2 crores, with 96.4 per
of re-KYC of bank accounts, at Gram Panchayat
cent being maintained by PSBs and RRBs. Total
and Urban Local Bodies level. At end-November
deposits in PMJDY accounts increased by 12 per 2025, the total number of PMJDY accounts
cent to ₹2.6 lakh crore at end-March 2025 (Chart reached 57.1 crores with deposits of ₹2.7 lakh
IV.38a). The average deposit in PMJDY accounts crore.
Chart IV.38: Progress under PMJDY
a. Number and Total Deposits of PMJDY Accounts b. Average Balance in PMJDY Accounts
(No. of accounts in crore, left scale; ₹ lakh crore, right scale) (₹)
2.6
60 3
50
40 2
30
20 1
10
0 0
Rural/ semi-urban Urban/ metropolitan
Total deposits (RHS)
Note: Data pertains to last Wednesday of the year.
Source: PMJDY, Government of India.
85
51-raM 61-raM 71-raM 81-raM 91-raM 02-raM 12-raM 22-raM 32-raM 42-raM 52-raM
6,000
4,719
5,000
4,000
3,000
2,000
1,000
0
Public sector banks Private sector banks
Regional rural banks All banks
51-raM 61-raM 71-raM 81-raM 91-raM 02-raM 12-raM 22-raM 32-raM 42-raM 52-raM
Chart IV.37: RBI – Financial Inclusion Index
(Index)
70 2.8 67.0
4.1
60 0.8 2.5 3.7
3.2
50 3.9 2.6
43.4
40
30
20
10
0
Total Increase
Note: The index value ranges between zero and 100, where zero
indicates complete financial exclusion and 100 indicates full financial
inclusion.
Source: RBI.
71-raM 81-7102 91-8102 02-9102 12-0202 22-1202 32-2202 42-3202 52-4202 52-raMReport on Trend and Progress of Banking in India 2024-25
12.4 New Bank Branches by SCBs Table IV.29: Tier-wise Distribution of Newly
Opened Bank Branches of SCBs
IV.84 Physical bank branches continue to
Tier 2021-22 2022-23 2023-24 2024-25
expand alongside digitalisation for customer 1 2 3 4 5
engagement. At end-March 2025, there were 1.64 Tier 1 1,567 2,323 2,681 2,413
(48.2) (43.6) (49.8) (48.3)
lakh domestic branches of SCBs, an increase of Tier 2 233 471 451 375
(7.2) (8.8) (8.4) (7.5)
2.8 per cent over the previous year. New branch
Tier 3 424 809 684 654
openings by SCBs, which had accelerated in the (13.0) (15.2) (12.7) (13.1)
Tier 4 292 544 433 472
previous two years, moderated slightly during
(9.0) (10.2) (8.0) (9.5)
2024-25. Nearly half of the new bank branches Tier 5 227 424 368 352
(7.0) (7.9) (6.8) (7.1)
opened during the year were in Tier 1 (urban/
Tier 6 509 763 762 725
(15.7) (14.3) (14.2) (14.5)
metropolitan) centres, with the remaining half
Total 3,252 5,334 5,379 4,991
in Tier 2-6 (semi-urban/ rural) centres (Table (100.0) (100.0) (100.0) (100.0)
Notes: 1. ‘Tier 1’ includes centres with population of 1,00,000 and
IV.29).
above, ‘Tier 2’ includes centres with population of 50,000 to
99,999, ‘Tier 3’ includes centres with population of 20,000 to
IV.85 New bank branch openings by PSBs
49,999, ‘Tier 4’ includes centres with population of 10,000 to
accelerated while there was a decline in branch 19,999, ‘Tier 5’ includes centres with population of 5,000 to
9,999, and ‘Tier 6’ includes centres with population of less
openings by PVBs. Consequently, the share of than 5,000. All population figures are as per census 2011.
2. Data exclude digital banking units and administrative offices.
PVBs in total new branches opened by SCBs
3. Figures in parentheses represent the number of branches
opened in a particular tier as per cent of the total.
declined to 51.8 per cent in 2024-25 from 65.5
4. Components may not add up to total due to rounding off.
per cent in 2023-24. Further, 67.3 per cent of Source: Central Information System for Banking Infrastructure (CISBI),
RBI. CISBI data are updated based on information received from banks.
the new branches of PSBs were opened in rural
and semi-urban centres, while the proportion 12.5 Regional Banking Penetration
for PVBs was 37.5 per cent (Chart IV.39 and IV.86 The southern region accounts for the
Appendix Table IV.12). largest number of bank branches, while banking
Chart IV.39: Population Group-wise Distribution of Newly Opened Bank Branches of SCBs
(Number)
2,000
1,800
1,600 21
3
1,400 170 1
1,200 1 7 98
60 81 5
1,000 128 543 4
2
800
427 904
600 713
400
200 460 766 311 286
0
Public sector banks Private sector banks Foreign banks Small finance banks Payments banks Regional rural banks
Source: CISBI, RBI.
86
22-1202 32-2202 42-3202 52-4202 22-1202 32-2202 42-3202 52-4202 22-1202 32-2202 42-3202 52-4202 22-1202 32-2202 42-3202 52-4202
Rural Semi-urban Urban MetropolitanCOMMERCIAL BANKS
Chart IV.40: Regional Penetration of Banks
(Population per Bank Branch)
12,000
10,000 9,889 9,543
8,866
8,000
7,142 7,370
6,000 5,500 5,462
4,000
2,000
0
Eastern region Central region North eastern Western region Southern region Northern region All India
region
Mar-20 Mar-25
Sources: RBI; and Office of the Registrar General & Census Commissioner of India, Ministry of Home Affairs, Government of India.
penetration is highest for the northern region at slightly on account of lower disbursements
end-March 2025.27 In recent years, the banking in the southern region (Chart IV.41). At
penetration has improved across all regions, end-March 2025, the savings balances of SHGs
with the sharpest improvement in north-eastern with banks increased by 9.7 per cent to ₹ 0.7
region (Chart IV.40). lakh crore, while their outstanding loans from
banks increased by 17.2 per cent to ₹ 3 lakh
12.6 Microfinance Programme
crore.
IV.87 Microfinance serves as an effective
instrument for advancing financial Chart IV.41: Regional Distribution of Bank Loans
Disbursed to Self Help Groups
inclusion, entailing the delivery of financial
(₹ crore)
2,50,000
services, including small-value credit, to the
3,675
underserved and the unbanked segments of
6,306
2,00,000
8,370
the population, thereby fostering social equity
13,070
and empowerment. The Self-Help Group - Bank
1,50,000
61,553
Linkage Programme (SHG-BLP), which aims at
extending formal savings and credit facilities 1,00,000
to the rural poor, has emerged as the world’s
50,000 1,15,309
largest micro-finance movement. The number
of SHGs accessing credit from banks increased
0
to 55.6 lakh in 2024-25 from 54.8 lakh in 2021-22 2022-23 2023-24 2024-25
Southern region Eastern region Western region
the previous year. However, the amount of
Central region North eastern region Northern region
loans disbursed by banks to SHGs moderated Source: NABARD.
27 Banking penetration is measured by population per branch. Higher population per bank branch indicates lower penetration.
87Report on Trend and Progress of Banking in India 2024-25
IV.88 The amount of loans disbursed by economically weaker sections of the population.
banks to joint liability groups (JLGs), which Their functional focus areas have been
are informal credit groups of small borrowers, agriculture, trade, commerce, and small-scale
declined by 58 per cent during 2024-25 industries in the rural areas. At end-March
(Appendix Table IV.13). 2025, there were 43 RRBs sponsored by 12
SCBs operating through 22,158 branches in 26
12.7 Trade Receivables Discounting System
states and three union territories (Puducherry,
(TReDS)
Jammu & Kashmir, and Ladakh).
IV.89 TReDS is an electronic platform for
IV.91 In line with their mandate, nearly 92 per
facilitating the financing / discounting of trade
cent of RRB branches were in the rural and semi-
receivables of micro, small and medium
urban areas. The southern region has the highest
enterprises (MSME) due from corporates and
number of RRBs, contributing 42.1 per cent
other buyers such as Government departments
of the total profits of all RRBs during 2024-25
and public sector undertakings. TReDS gained
(Appendix Table IV.14). Guided by the principle
further traction in 2024-25 with a sharp
of ‘One State-One RRB’, the Government of India
increase in both the number and amount of
notified the Phase-IV amalgamation of RRBs on
invoices uploaded and financed. The success
April 5, 2025.28 Accordingly, the total number
rate, measured as the percentage of uploaded
of RRBs was reduced from 43 to 28 with effect
invoices that get financed, improved to 95.3 per
from May 1, 2025.
cent in 2024-25 from 94.4 per cent in 2023-24
(Table IV.30). 13.1 Balance Sheet Analysis
13. Regional Rural Banks IV.92 The combined balance sheet of RRBs
grew by 7.6 per cent in 2024-25 as against 8.9 per
IV.90 Regional rural banks were established
cent in the previous year. RRBs relied more on
as professionally managed alternative channel
deposits and their owned funds to meet lending
for credit dispensation to small and marginal
requirements as the borrowings contracted
farmers, agricultural labourers, and socio-
marginally during the year (Table IV.31).
Table IV.30: Progress in MSME Financing IV.93 Deposits accounted for 79 per cent of
through TReDS
RRBs’ total liabilities, although their deposit
(Amount in ₹ crore)
growth remained below that of other SCBs during
Financial Year Invoices Uploaded Invoices Financed
Number Amount Number Amount 2024-25. Low-cost CASA deposits had a share
1 2 3 4 5 of 53.5 per cent in RRBs’ total deposits at end-
2021-22 17,33,553 44,112 16,40,824 40,309
March 2025, the highest amongst all categories
2022-23 27,24,872 83,955 25,58,531 76,646
of SCBs, except payments banks.29 The credit-
2023-24 44,04,148 1,51,343 41,58,554 1,38,241
2024-25 64,04,936 2,47,796 61,01,384 2,33,711 deposit (CD) ratio of RRBs30 increased to 73.1
Source: RBI. per cent at end-March 2025, its highest level
28 The Government of India initiated structural consolidation of RRBs to improve their operational viability and take advantage of
economies of scale. The earlier three rounds of amalgamation had led to a reduction in the number of RRBs to 43 in 2020-21 from
196 in 2004-05.
29 PBs are not permitted to mobilise term deposits.
30 Calculated as the ratio of gross advances to deposits of RRBs.
88COMMERCIAL BANKS
Table IV.31: Consolidated Balance Sheet of Table IV.32: Financial Performance of Regional
Regional Rural Banks Rural Banks
Item Amount as at Y-o-y growth Item Amount Y-o-y growth
end-March (per cent) (₹ crore) (per cent)
(₹ crore)
2023-24 2024-25 2023-24 2024-25
2024 2025 2024 2025
1 2 3 4 5
1 2 3 4 5
A. Income (i+ii) 70,443 78,090 18.5 10.9
1. Share Capital 19,042 19,303 10.5 1.4
i. Interest Income 61,341 67,422 14.4 9.9
2. Reserves 46,659 53,060 16.3 13.7
ii. Other Income 9,101 10,668 57.3 17.2
3. Deposits 6,59,815 7,13,800 8.4 8.2
B. Expenditure (i+ii+iii) 62,872 71,270 15.5 13.4
3.1 Current 11,952 13,375 0.1 11.9
i. Interest Expended 33,237 37,153 24.5 11.8
3.2 Savings 3,47,193 3,68,574 8.6 6.2
ii. Operating Expenses 21,267 27,129 -2.8 27.6
3.3 Term 3,00,670 3,31,851 8.5 10.4
of which, Wage Bill 15,305 20,200 -8.3 32.0
4. Borrowings 92,444 92,268 9.1 -0.2
iii. Provisions and 8,368 6,989 42.5 -16.5
4.1 NABARD 77,166 77,455 5.5 0.4 Contingencies
4.2 Sponsor Bank 4,293 7,949 26.0 85.2 of which, Income Tax 2,430 2,186 70.7 -10.0
4.3 Others 10,986 6,864 34.2 -37.5 C. Profit
5. Other Liabilities 22,120 25,495 5.9 15.3 i. Operating Profit 15,938 13,809 47.0 -13.4
Total Liabilities/Assets 8,40,080 9,03,925 8.9 7.6 ii. Net Profit 7,571 6,820 52.2 -9.9
1. Cash in Hand 2,933 2,764 1.6 -5.8 D. Financial Ratios (Per cent)
2. Balances with RBI 30,990 30,065 5.7 -3.0 i. Operating Profit 2.0 1.6
3. Balances in Current Account 8,173 9,752 14.3 19.3 ii. Net Profit 1.0 0.8
4. Investments 3,19,099 3,21,213 1.8 0.7 iii. Income (a+b) 8.9 9.1
5. Loans and Advances 4,45,286 5,02,434 15.1 12.8 a. Interest Income 7.8 7.9
b. Other Income 1.2 1.2
6. Fixed Assets 1,581 1,979 12.4 25.2
iv. Expenditure (a+b+c) 7.9 8.3
7. Other Assets, of which, 32,019 35,718 5.6 11.6
a. Interest Expended 4.2 4.3
7.1 Accumulated Losses 8,921 8,435 -9.4 -5.4
b. Operating Expenses 2.7 3.2
Note: Data are provisional for end-March 2025.
Source: NABARD. of which, Wage Bill 1.9 2.4
c. Provisions and 1.1 0.8
Contingencies
in 35 years, as growth in loans and advances
E. Analytical Ratios (Per cent)#
outpaced deposit growth.
Gross NPA Ratio 6.2 5.4
CRAR 14.2 14.4
13.2 Financial Performance
#: As at end-March.
Notes: 1. Data are provisional for 2024-25.
IV.94 RRBs recorded a decline in profits during
2. Financial ratios are calculated as per cent of average of
current and previous year’s total assets.
2024-25. This was mainly on account of increase
Source: NABARD.
in wage bill following the implementation of the
pension scheme and computer increment liability IV.95 The consolidated GNPA ratio of RRBs
with effect from November 1, 1993 in pursuance declined to a 13-year low of 5.4 per cent at end-
of a directive from the Hon’ble Supreme Court March 2025 (Chart IV.42). The improvement
of India (Table IV.32).31 RRBs’ miscellaneous in asset quality was accompanied by higher
income registered a healthy growth primarily provision buffers, resulting in a decline in
driven by the issuance of PSLCs leveraging their NNPA ratio to 2.0 per cent at end-March 2025.
strong priority sector lending portfolio. Nonetheless, the number of loss-making RRBs
31 In view of the difficulties expressed in meeting the additional pension liability in a single year, which would adversely impact the
financial health of a number of RRBs, RBI permitted RRBs to amortise the additional pension liability over a period not exceeding
five years beginning with the financial year ending 31 March 2025.
89Report on Trend and Progress of Banking in India 2024-25
since 2021-22 onwards consequent to their
Chart IV.42: Asset Quality of Regional Rural Banks
(Per cent) recapitalisation and improved profitability
10
(Chart IV.43b).
9
IV.97 Priority sector advances accounted for
8
84.7 per cent of the RRBs’ total loan portfolio at
7
end-March 2025 (Table IV.33). During 2024-25,
6
5.4 all RRBs met their overall target of lending 75
5
per cent of their adjusted net bank credit/ credit
4
equivalent of off-balance sheet exposure to the
3
priority sector (Appendix Table IV.15).
2.0
2
14. Local Area Banks
1
IV.98 Local Area Banks (LABs) are small,
0
Mar-21 Mar-22 Mar-23 Mar-24 Mar-25
privately-owned banks established with the
GNPA ratio NNPA ratio
Source: NABARD. objective of functioning as low-cost entities to offer
efficient and competitive financial intermediation
increased to five during 2024-25 from three in
services. LABs have a defined geographical area
the previous year largely on account of the one-
of operation, specifically targeting rural and
off increase in wage bill mentioned earlier, and
semi-urban regions encompassing contiguous
rise in state-specific NPA ratio (Appendix Table
IV.14). districts. At end-March 2025, there were two
LABs with 79 branches in operation.
IV.96 The consolidated CRAR of RRBs reached
an all-time high of 14.4 per cent at end-March IV.99 During 2024-25, the combined balance
2025 (Chart IV.43a). There has been a steady sheet size of LABs increased by 9.3 per cent,
decline in the number of RRBs with CRAR with both advances as well as deposits growing
below the regulatory minimum of 9.0 per cent at a higher pace vis-à-vis previous year. With
Chart IV.43: Capital to Risk-weighted Assets Ratio (CRAR) of Regional Rural Banks
(At end-March)
a. CRAR b. RRBs with CRAR < 9 per cent
(Per cent) (Number)
18 16.8 18
16 16
14.4
14 14
12 11.2 12
10 10
8 8
6 6
4 4 3
2
2 2 1
0 0
Non-recapitalised Recapitalised Total Non-recapitalised Recapitalised Total
RRBs RRBs RRBs RRBs
2021 2025 2021 2025
Source: NABARD.
90COMMERCIAL BANKS
Table IV.33: Purpose-wise Outstanding Table IV.35: Financial Performance of
Advances by Regional Rural Banks Local Area Banks
(At end-March)
Item Amount Y-o-y growth
(Amount in ₹ crore)
(₹ crore) (per cent)
Purpose 2024 2025 (P) 2023-24 2024-25 2023-24 2024-25
1 2 3 1 2 3 4 5
I. Priority (i to v) 4,08,810 4,42,041 A. Income (i+ii) 197 209 10.1 6.1
Per cent of total loans outstanding 87.0 84.7 i. Interest Income 172 182 12.8 5.8
i. Agriculture 3,16,671 3,42,253
ii. Other Income 25 27 -5.7 8.8
ii. Micro, Small and Medium Enterprises 57,639 58,784
B. Expenditure (i+ii+iii) 162 180 13.7 11.2
iii. Education 1,609 1,582
i. Interest Expended 79 88 25.9 11.9
iv. Housing 26,047 27,411
ii. Operating Expenses 68 72 14.6 6.9
v. Others 6,843 12,010
II. Non-priority (i to vi) 61,300 79,872 of which, Wage Bill 33 36 13.5 10.9
Per cent of total loans outstanding 13.0 15.3 iii. Provisions and 15 19 -26.0 27.0
Contingencies
i. Agriculture 17 7
ii. Micro, Small and Medium Enterprises 187 179 C. Profit
iii. Education 343 442 i. Operating Profit 50 48 -11.9 -4.0
iv. Housing 13,620 16,627 ii. Net Profit 35 29 -3.9 -17.6
v. Personal Loans 17,788 17,720 D. Net Interest Income 93 94 3.7 0.5
vi. Others 29,345 44,898 E. Financial Ratios (Per cent)
Total (I+II) 4,70,109 5,21,913 i. Operating Profit 3.3 2.9
P: Provisional. ii. Net Profit 2.3 1.7
Source: NABARD.
iii. Income (a + b) 12.9 12.6
a. Interest Income 11.3 11.0
credit growth above deposit growth, the credit-
b. Other Income 1.6 1.6
deposit ratio increased to 85.6 per cent at end-
iv. Expenditure (a+b+c) 10.6 10.9
March 2025 from 81.4 per cent a year ago (Table a. Interest Expended 5.2 5.3
b. Operating Expenses 4.4 4.4
IV.34).
of which, Wage Bill 2.1 2.2
14.1 Financial Performance c. Provisions and 1.0 1.2
Contingencies
IV.100 Net profits of LABs declined during 2024- v. Net Interest Income 6.1 5.6
25. Profitability was lower on account of lower Note: Financial ratios are calculated as per cent of average of current
and previous year’s total assets.
income growth vis-à-vis expenditure growth, as Source: Off-site returns (domestic operations), RBI.
interest income growth more than halved and
provisions and contingencies increased during 15. Small Finance Banks
2024-25 (Table IV.35).
IV.101 Small finance banks (SFBs) are
Table IV.34: Profile of Local Area Banks specialised institutions set up to provide formal
(At end-March) saving avenues to the unserved and underserved
(Amount in ₹ crore)
sections of the population, and supply credit
Item 2024 2025
1 2 3 to small business units, small and marginal
1. Assets 1,584 1,731
farmers, micro and small industries and
(7.5) (9.3)
2. Deposits 1,271 1,385 other unorganised sector entities through high
(6.8) (9.0)
technology and low-cost operations. At end-
3. Gross Advances 1,034 1,186
(7.2) (14.7) March 2025, 11 SFBs were operational with
Note: Figures in parentheses represent y-o-y growth in per cent.
Source: Off-site returns (domestic operations), RBI. 7,403 domestic branches in India.32
32 The number of SFBs declined from 12 to 11 in 2024-25 following the merger of one SFB with another, effective April 1, 2024.
91Report on Trend and Progress of Banking in India 2024-25
15.1 Balance Sheet Table IV.37: Financial Performance of Small
Finance Banks
IV.102 SFBs’ combined balance sheet size
Item Amount Y-o-y growth
continued to increase in double-digits during (₹ crore) (per cent)
2023-24 2024-25 2023-24 2024-25
2024-25, outpacing the growth in other
1 2 3 4 5
categories of SCBs. Term deposits accounted
A. Income (i+ii) 45,400 54,223 34.3 19.4
for 73.9 per cent of the total deposits of SFBs at i. Interest Income 39,647 46,782 33.0 18.0
ii. Other Income 5,753 7,441 43.8 29.3
end-March 2025. With deposit growth remaining
B. Expenditure (i+ii+iii) 39,181 50,727 32.2 29.5
higher than credit growth, the credit-deposit i. Interest Expended 17,474 22,336 43.9 27.8
ii. Operating Expenses 17,186 20,247 30.7 17.8
(CD) ratio of SFBs moderated to 86.4 per cent at
of which, Wage Bill 8,498 10,321 26.8 21.4
end-March 2025 from 90.1 per cent a year ago
iii. Provisions and
4,521 8,144 3.8 80.1
Contingencies
(Table IV.36).
C. Profit
15.2 Financial Performance i. Operating Profit 10,740 11,640 26.1 8.4
ii. Net Profit 6,219 3,496 49.4 -43.8
IV.103 Profitability of SFBs moderated during D. F inancial Ratios (Per cent)
i. Operating Profit 3.6 3.1
2024-25 despite robust balance sheet growth. Net
ii. Net Profit 2.1 0.9
profits of SFBs declined due to a sharp increase iii. Income (a+b) 15.1 14.6
in expenditure on provisions and contingencies. a. Interest Income 13.2 12.6
b. Other Income 1.9 2.0
Asset quality of SFBs recorded a decline, with
iv. Expenditure (a+b+c) 13.0 13.7
an increase in GNPA ratio to 3.6 per cent at end- a. Interest Expended 5.8 6.0
b. Operating Expenses 5.7 5.5
of which, Wage Bill 2.8 2.8
Table IV.36: Consolidated Balance Sheet of
c. Provisions and
1.5 2.2
Small Finance Banks contingencies
E. Analytical Ratios (Per cent)#
Item Amount as at Y-o-y growth
end-March (per cent) Gross NPA Ratio 2.4 3.6
(₹ crore) CRAR 21.6 21.5
2024 2025 2024 2025 Core CRAR (Tier 1 Capital) 19.4 18.8
#: As at end-March.
1 2 3 4 5
Note: Financial ratios are calculated as per cent of average of current
1. Capital 7,844 8,307 0.4 5.9 and previous year’s total assets.
2. Reserves & Surplus 32,957 36,339 39.9 10.3 Sources: Annual accounts of banks; and off-site returns (domestic
operations), RBI.
3. Deposits 2,50,896 3,15,401 31.1 25.7
3.1 Demand 10,895 13,685 46.7 25.6 March 2025. The SFBs, however, remain well-
3.2 Savings 59,691 68,666 9.2 15.0
capitalised with the CRAR at 21.5 per cent and
3.3 Term 1,80,310 2,33,050 39.5 29.2
4. Borrowings 28,255 30,022 -9.4 6.3 core CRAR (Tier 1 capital) at 18.8 per cent at
5. Other Liabilities and 15,328 15,394 12.5 0.4
end-March 2025 (Table IV.37).
Provisions
Total Liabilities/Assets 3,35,280 4,05,463 25.3 20.9
16. Payments Banks
1. Cash and Balances 17,503 26,780 -1.9 53.0
with RBI
IV.104 Payments banks (PBs) are specialised
2. Balances with Banks and 6,259 5,777 38.2 -7.7
Money at Call and Short
financial institutions established with the
Notice
3. Investments 74,283 87,286 27.9 17.5 objective of enhancing financial inclusion by
4. Loans and Advances 2,26,148 2,72,481 27.1 20.5
leveraging technological advancements. At
5. Fixed Assets 3,353 4,205 22.6 25.4
6. Other Assets 7,733 8,936 19.6 15.6 end-March 2025, six payments banks were
Source: Annual accounts of banks.
operational with 81 branches.
92COMMERCIAL BANKS
16.1 Balance sheet Table IV.39: Financial Performance of
Payments Banks
IV.105 During 2024-25, the combined balance
Item Amount Y-o-y growth
sheet size of PBs recorded strong growth led by (₹ crore) (per cent)
2023-24 2024-25 2023-24 2024-25
deposits on the liability side and investments on
1 2 3 4 5
the asset side (Table IV.38). Deposits – savings
A. Income (i+ii) 7,857 7,697 20.7 -2.0
and current – constituted 68.1 per cent of the i. Interest Income 1,441 1,733 64.3 20.3
ii. Non-Interest Income 6,416 5,964 14.0 -7.0
total liabilities of PBs at end-March 2025. The
B. Expenditure (i+ii+iii) 7,762 7,605 -21.0 -2.0
assets side was dominated by SLR investments in
i. Interest Expended 356 548 44.1 54.1
accordance with the restriction on their lending ii. Operating Expenses 7,292 6,923 18.5 -5.1
iii. Provisions and 115 134 688.6 16.7
activities. All PBs complied with the regulatory
Contingencies
minimum CRAR of 15 per cent. of which,
Risk Provisions 11 0.3 185.3 -97.3
16.2 Financial Performance Tax Provisions 68 3 773.4 -95.3
C. Profit
IV.106 PBs, which had registered losses in
i. Operating Profit 209 226 97.0 8.2
the initial years of their operations, remained ii. Net Profit 94 92 3.0 -2.2
D. Net Interest Income 1,085 1,185 72.2 9.2
profitable for the third consecutive year in 2024-
E. Analytical Ratios (Per cent)
25. Operating profits increased supported by
Return on Assets 0.4 0.3
a rise in interest income, even as non-interest Return on Equity 3.0 2.6
Investments to Total Assets# 55.9 63.9
income declined. Net profit remained positive,
Net Interest Margin 6.0 4.6
albeit with a marginal decline reflecting a rise in
Cost-to-Income Ratio 97.2 96.8
provisions and contingencies (Table IV.39). Operating Profit to 0.8 0.7
Working Funds
IV.107 Reflecting the decline in net profits, the Net Profit Margin 1.3 1.3
#: As at end-March.
return on assets and return on equity of PBs
Note: Data pertains to six payments banks, including both scheduled
and non-scheduled payments banks.
Source: Off-site returns (domestic operations), RBI.
Table IV.38: Consolidated Balance Sheet of
Payments Banks
moderated during 2024-25. PBs’ investments
Item Amount as at Y-o-y growth
as a proportion of total assets increased, while
end-March (per cent)
(₹ crore)
their net interest margin moderated during the
2024 2025 2024 2025
year. PBs continued to register efficiency gains
1 2 3 4 5
1. Total Capital and Reserves 3,440 3,584 17.1 4.2 as cost-to-income ratio declined further during
2. Deposits 16,330 25,605 33.6 56.8
2024-25.
3. Other Liabilities and
6,385 8,403 -23.8 31.6
Provisions
17. Overall Assessment
Total Liabilities/Assets 26,155 37,592 11.1 43.7
1. Cash and Balances with
3,094 3,715 26.1 20.1
RBI IV.108 During 2024-25, scheduled commercial
2. Balances with Banks and
4,350 6,636 -13.1 52.6 banks’ balance sheet expanded at a healthy pace,
Money Market
3. Investments 14,627 24,037 18.0 64.3 driven by double digit growth in deposits and
4. Fixed Assets 1,266 1,339 125.3 5.8
credit, albeit with some moderation. Profitability
5. Other Assets 2,819 1,865 -9.6 -33.9
Note: Data pertains to six payments banks, including both scheduled remained strong as reflected in an increase in
and non-scheduled payments banks.
Source: Off-site returns (domestic operations), RBI. their return on assets. Asset quality improved
93Report on Trend and Progress of Banking in India 2024-25
further as gross non-performing assets ratio changing technology and digitalisation could
declined to a multi-decadal low. Banks remain change the way people transact with banks
well-capitalised with leverage and liquidity ratios for their savings and credit needs, while also
exposing the banking system to newer risks
well above the regulatory minimum. These strong
including cyber risk. Strengthening risk
fundamentals provide a buffer against risks and
assessment and improving operational efficiency
support the banking sector’s capacity to sustain
through responsible technology adoption remain
credit expansion.
essential, with continued emphasis on financial
IV.109 Going forward, banks will continue inclusion, consumer education and protection.
to face competition from non-bank sources Robust corporate governance with strong risk
in meeting the resource requirements of the management practices remains critical for
commercial sector. Furthermore, rapidly banks’ long-term success.
94V
CO-OPERATIVE BANKS
Urban co-operative banks’ balance sheet expanded during 2024-25 on higher credit growth supported by
deposits and borrowings. Their financial performance remained robust on the back of improved profitability,
better asset quality and strong capital buffers. These gains were aided by ongoing consolidation and
regulatory measures to strengthen resilience under the four-tier framework. Rural co-operatives continued
to support agricultural credit delivery, although their performance varied across short-term and long-term
institutions.
Introduction V.2. Against this backdrop, the rest of the
chapter focuses on analysing the performance
V.1. Co-operative banks play an important
of urban and rural co-operative banks during
role in India’s financial system by extending
the period under review.1 Section 2 outlines the
last-mile credit and supporting localised
evolving structure of the co-operative banking
financial intermediation. In recent years, urban
sector, followed by an assessment of profitability,
co-operative banks are witnessing a steady
asset quality and capital adequacy of urban
consolidation through voluntary mergers and
co-operative banks in Section 3. Financial
regulatory rationalisation under the four-tier
performance of short-term and long-term rural
regulatory framework. They recorded balance
co-operatives is examined in Section 4, which is
sheet expansion during 2024-25, supported
followed by an overall assessment in Section 5.
by improved credit growth and higher deposit
mobilisation. Their profitability improved on 2. Structure of the Co-operative Banking
Sector
account of lower provisioning and higher non-
interest income, while capital buffers and asset V.3. Co-operative banking structure in India
quality strengthened further. Among rural co- includes urban co-operative banks (UCBs) and
operatives, short-term credit institutions — rural credit co-operatives (RCCs). While UCBs
comprising state and district central co-operative primarily serve the credit needs of urban and
banks and primary agricultural credit societies semi-urban areas, RCCs mainly cater to the
— continue to play a pivotal role in agricultural agricultural and allied sectors in rural areas. UCBs
finance. Both state co-operative banks and are classified as scheduled or non-scheduled,
district central co-operative banks reported based on (i) whether they are included in the
profits with improvement in asset quality during second schedule of the Reserve Bank of India
2024-25. Performance of long-term cooperatives Act, 19342; and (ii) their geographical outreach
remains mixed with variation observed across in terms of single-state or multi-state presence.
states. RCCs, on the contrary, are classified into short-
1 Primary agricultural credit societies and long-term rural credit co-operatives are outside the regulatory purview of the Reserve Bank.
However, a brief description of their activities and performance is given in this chapter for the sake of completeness of the analysis.
2 Apart from scheduled co-operative banks, scheduled commercial banks are also included in the same schedule of the Act.
95Report on Trend and Progress of Banking in India 2024-25
Chart V.1: Structure of Credit Co-operatives
Scheduled Co-operatives
(49)
Urban Co-operatives
(1,457)
Non-scheduled Co-opertives
(1,408) StCBs
All Co-operatives (34)
(1,10,105)
DCCBs
Short-term Co-Operatives (351)
(1,08,026)
PACS
Rural Co-operatives (1,07,641)
(1,08,648) SCARDBs
(13)
Long-term Co-Operatives
(622) PCARDBs
(609)
StCBs: State co-operative banks; DCCBs: District central co-operative banks; PACS: Primary agricultural credit societies; SCARDBs: State
co-operative agriculture and rural development banks; PCARDBs: Primary co-operative agriculture and rural development banks.
Note: Figures in parentheses indicate the number of institutions at end-March 2025 for UCBs, StCBs and DCCBs, and at end-March 2024 for other
RCCs.
Sources: RBI; National Bank for Agriculture and Rural Development (NABARD); and National Federation of State Co-operative Banks Ltd.
(NAFSCOB).
term and long-term institutions. During the assets of the total co-operative sector, with 68.6
period under review, there were 1,457 UCBs and per cent contributed by short-term co-operatives
1,08,648 RCCs (Chart V.1).3 and 2.5 per cent by long-term co-operatives
(Chart V.2).
V.4. Regulation and supervision of these entities
follow a differentiated framework. UCBs are
regulated and supervised by the Reserve Bank,
whereas state co-operative banks (StCBs) and Chart V.2: Distribution of Credit Co-operatives
by Asset Size
district central co-operative banks (DCCBs) are
(At end-March 2024, per cent)
regulated by the Reserve Bank but supervised
by the National Bank for Agriculture and Rural
Scheduled
(13.1%)
Development (NABARD). Primary agricultural (D 3C 1.C 2B %s )
c ar ge rd ici ut ltus ro ec iet ai nes
d
( rP uA rC aS
l
), des vt ea lt oe
p
mc eo n- to pe br aa nti kv se
Lo (n 2g .5-t %er )m
Non- schedule (d 15.7%) (U 28rb .8a %n )
SCARDBs
(SCARDBs) and primary co-operative agriculture (1.2%)
Rural
PCARDBs (71.2%)
and rural development banks (PCARDBs) lie (1.4%) Short-term
(68.6%)
outside the purview of the Banking Regulation (1P 7A .C 5%S ) (1S 9tC .9B %s )
Act, 1949.
Notes: 1. The sunburst chart represents layers in the co-operative
banking sector. The size of each segment is proportional
V.5. The consolidated assets of the co-operative
to its share (mentioned in parentheses) in total assets of
the sector.
sector stood at ₹ 24.5 lakh crore at end-March
2. Shares may not add up due to rounding off to one decimal.
Sources: RBI; NABARD; and NAFSCOB.
2024. RCCs accounted for 71.2 per cent of the
3 Data for primary agricultural credit societies (PACS), state co-operative agriculture and rural development banks (SCARDBs) and
primary co-operative agriculture and rural development banks (PCARDBs) are available with a lag of one year, i.e., they relate to
2023-24.
96CO-OPERATIVE BANKS
3. Urban Co-operative Banks
Chart V.3: Number of Urban Co-operative Banks
V.6. The Reserve Bank initiated the process of 2,000
1,926
consolidation of UCBs in 2004-05, including 1,900
-54
amalgamation of unviable UCBs with their -19
1,800 -40
viable counterparts, closure of non-viable UCBs, -43
1,700 -49
and suspension of issuance of new licenses. -47
-29
1,600 -27
C sto en as de ilq yu fe rn ot mly ,
1
,t 9h 2e
6
n au
t
m enb de -r
M
ao rf
c
hU 2C 0B 0s
4
d toe c 1l ,i 4n 5ed
7 1,500
-12 -17 -10-5-12-11-7
-5 -5 -20 1,457
-12
-30
-15
at end-March 2025 (Chart V.3). 1,400
V.7. During 2024-25, seven mergers of UCBs—
six in Maharashtra and one in Telangana—were
effected. With this, the total number of mergers Source: Off-site returns, RBI.
since 2004-05 rose to 163, of which more concentrated mainly in the non-scheduled
than half were in Maharashtra (Chart V.4a). category (Chart V.4b).
In addition, licenses of eight non-scheduled
V.8. Given the heterogeneity in the co-operative
UCBs—two each in Uttar Pradesh and Andhra
sector, the Reserve Bank, on December 1, 2022,
Pradesh, and one each in Bihar, Maharashtra,
adopted a four-tiered regulatory framework
Assam and Tamil Nadu—were cancelled during for UCBs in line with the recommendations of
the year. With this, the total number of license the Expert Committee on Urban Co-operative
cancellations since 2020-21 increased to 57, Banks (Chairman: Shri N. S. Vishwanathan).4
4 UCBs with deposits up to ₹100 crore have been classified as Tier 1; those with deposits more than ₹100 crore and up to ₹1,000
crore as Tier 2; those with deposits more than ₹1,000 crore and up to ₹10,000 crore as Tier 3; and those above ₹10,000 crore are
placed in Tier 4. As per the circular dated December 01, 2022, all unit UCBs and salary earners’ UCBs (irrespective of deposit size)
are classified as Tier 1 UCBs. The deposits referred to above shall be reckoned as per the audited balance sheet as on 31st March of
the immediate preceding financial year.
97
40-raM 50-4002 60-5002 70-6002 80-7002 90-8002 01-9002 11-0102 21-1102 31-2102 41-3102 51-4102 61-5102 71-6102 81-7102 91-8102 02-9102 12-0202 22-1202 32-2202 42-3202 52-4202 52-raM
Total Decrease
Chart V.4: Consolidation Drive in Urban Co-operative Banks
b. Number of Licence Cancellations
25
2
20
15
22 10
1
5 1 10 8 8
5
0
12-0202 22-1202 32-2202 42-3202 52-4202
a. Geographical Distribution of Mergers
(Number of mergers during 2004-05 to 2024-25)
1 2
1
3 2
42 2
88 5
Cummulative
5 12 number of
mergers
1 88 Non-scheduled Scheduled
Note: The license of Shimsha Sahakara Bank Niyamitha, Karnataka was cancelled as notified in the press release dated July 05, 2024, subsequently,
writ petition (WP No 19767 of 2024) was filed by the bank before the Hon’ble High Court of Karnataka, wherein the Hon’ble Court vide interim order
dated July 25, 2024, stayed the speaking order dated July 05, 2024, till the next date of hearing. The bank is currently under all-inclusive directions
as notified in the RBI press release dated August 8, 2024.
Source: RBI.Report on Trend and Progress of Banking in India 2024-25
Table V.1: Tier-wise Distribution of Urban Co-operative Banks
(At end-March 2025)
(Amount in ₹ crore, share in per cent)
Tier Type No. of Banks Deposits Advances Total Assets
Number Share Amount Share Amount Share Amount Share
1 2 3 4 5 6 7 8 9
1 838 57.5 65,760 11.3 43,991 11.9 89,089 12.1
2 535 36.7 1,78,433 30.5 1,09,980 29.7 2,24,705 30.4
3 78 5.4 2,01,311 34.4 1,22,712 33.1 2,48,549 33.6
4 6 0.4 1,38,910 23.8 93,542 25.3 1,76,386 23.9
All UCBs 1,457 100.0 5,84,415 100.0 3,70,225 100.0 7,38,729 100.0
Notes: 1. Data are provisional.
2. Components may not add up to the total due to rounding off.
Source: Off-site returns, RBI.
The regulation aimed to balance the spirit of UCBs, dominated the sector, accounting for
of mutuality and co-operation that is more more than half of deposits, advances and total
prevalent in smaller banks with limited area of assets (Table V.1).
operation vis-à-vis the growth ambitions of the
3.1. Balance Sheet
large-sized UCBs through geographical spread
and diverse business activities. At end-March V.9. The consolidated balance sheet of UCBs
2025, 57.5 per cent of the UCBs were classified grew by 4.4 per cent during 2024-25, marginally
as Tier 1. Tier 3 and Tier 4 UCBs, together with higher than 4.0 per cent in the previous year
less than 6 per cent share in the total number (Table V.2). Within UCBs, the growth was
Table V.2: Balance Sheet of Urban Co-operative Banks
(At end-March)
(Amount in ₹ crore)
Items Scheduled UCBs Non-scheduled UCBs All UCBs All UCBs (y-o-y growth
rate in per cent)
2024 2025 2024 2025 2024 2025 2023-24 2024-25
1 2 3 4 5 6 7 8 9
1) Capital 4,293 4,271 10,828 11,217 15,120 15,489 2.8 2.4
(1.3) (1.3) (2.8) (2.8) (2.1) (2.1)
2) Reserves and Surplus 25,290 27,029 29,383 32,276 54,673 59,305 13.3 8.5
(7.9) (8.0) (7.6) (8.1) (7.7) (8.0)
3) Deposits 2,54,479 2,70,209 3,00,931 3,14,207 5,55,410 5,84,415 4.1 5.2
(79.1) (79.7) (78.0) (78.6) (78.5) (79.1)
4) Borrowings 5,082 5,534 293 243 5,375 5,776 -13.9 7.5
(1.6) (1.6) (0.1) (0.1) (0.8) (0.8)
5) Other Liabilities and Provisions 32,579 32,158 44,382 41,586 76,961 73,744 -0.7 -4.2
(10.1) (9.5) (11.5) (10.4) (10.9) (10.0)
Total Liabilities/ Assets 3,21,723 3,39,200 3,85,816 3,99,529 7,07,539 7,38,729 4.0 4.4
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0)
1) Cash in Hand 1,759 1,764 4,424 4,194 6,183 5,958 5.1 -3.6
(0.5) (0.5) (1.1) (1.0) (0.9) (0.8)
2) Balances with RBI 13,778 13,687 4,544 4,688 18,322 18,375 12.0 0.3
(4.3) (4.0) (1.2) (1.2) (2.6) (2.5)
3) Balances with Banks 24,701 30,263 47,756 50,374 72,457 80,637 8.6 11.3
(7.7) (8.9) (12.4) (12.6) (10.2) (10.9)
4) Money at Call and Short Notice 2,367 2,908 1,033 1,370 3,401 4,278 -1.1 25.8
(0.7) (0.9) (0.3) (0.3) (0.5) (0.6)
5) Investments 86,626 86,619 1,07,018 1,06,851 1,93,644 1,93,471 1.6 -0.1
(26.9) (25.5) (27.7) (26.7) (27.4) (26.2)
6) Loans and Advances 1,59,553 1,71,391 1,87,300 1,98,833 3,46,853 3,70,225 5.0 6.7
(49.6) (50.5) (48.5) (49.8) (49.0) (50.1)
7) Other Assets 32,939 32,568 33,741 33,218 66,679 65,786 0.1 -1.3
(10.2) (9.6) (8.7) (8.3) (9.4) (8.9)
Notes: 1. Data for 2025 are provisional.
2. Figures in parentheses are the proportion to total liabilities/ assets (in per cent).
3. Components may not add up to the total due to rounding off.
Source: Off-site returns, RBI.
98CO-OPERATIVE BANKS
Chart V.5: Assets Growth
(Y-o-y, per cent)
10
8
6
5.4
4.4
4
3.6
2
0
-2
All UCBs Non-scheduled UCBs
Scheduled UCBs
Note: Data for 2024-25 are provisional.
Source: Off-site returns, RBI.
higher for scheduled UCBs (5.4 per cent)
compared with non-scheduled UCBs (3.6 per
cent) (Chart V.5).
V.10. Deposit growth of UCBs improved to 5.2
per cent during 2024-25 from 4.1 per cent a year
ago (Chart V.6a). Credit growth of UCBs also
accelerated to 6.7 per cent, highest in six years,
with improvement across both the scheduled
and the non-scheduled UCBs (Chart V.6b). At
99
12-0202 22-1202 32-2202 42-3202 52-4202
end-September 2025, deposit growth and credit
growth of UCBs stood at 6.8 per cent and 6.4
per cent, respectively.
V.11. On account of higher credit growth relative
to deposit growth, the credit-deposit (CD) ratio of
UCBs improved to 63.3 per cent at end-March
2025 from 62.4 per cent at end-March 2024
(Chart V.7).
Chart V.6: Deposits and Advances
a. Deposit Growth b. Credit Growth
(Y-o-y, per cent) (Y-o-y, per cent)
8
6 6.2 5.2
4 4.4
2
0
-2
-4
Note: Data for 2024-25 are provisional.
Source: Off-site returns, RBI.
12-0202 22-1202 32-2202 42-3202 52-4202
8 7.4
6.7
6 6.2
4
2
0
-2
All UCBs Non-scheduled UCBs
Scheduled UCBs
12-0202 22-1202 32-2202 42-3202 52-4202
Chart V.7: Credit-Deposit Ratio of UCBs
(At end-March, per cent)
64
63.4
63.3 63.3
63
62
61
60
59
58
57
56
Note: Data for 2025 are provisional.
Source: Off-site returns, RBI.
All UCBs Non-scheduled UCBs
Scheduled UCBs
1202 2202 3202 4202 5202
All UCBs Scheduled UCBs Non-scheduled UCBsReport on Trend and Progress of Banking in India 2024-25
V.12. UCBs rely predominantly on deposits for
funding, with borrowings accounting for only 0.8
per cent of total liabilities at end-March 2025.
During 2024-25, investments growth of UCBs
moderated for the fourth consecutive year and
turned negative, partly reflecting their strategy to
reallocate funds from investments to loans and
advances (Chart V.8).
V.13. Over the last decade, on an average, SLR
investments accounted for around 89 per cent of
the total investments of UCBs. The composition
of SLR investments, however, is shifting towards
state government securities with their share
rising from 15.2 per cent at end-March 2015 to
36.8 per cent at end-March 2025 (Table V.3 and
Chart V.9).
₹1000 crore accounted for 65.5 per cent of total
V.14. At end-March 2025, 46.3 per cent of
assets of UCBs (Table V.4). A similar pattern
UCBs had advances less than ₹50 crore, while was observed for deposits, with concentration of
largest 57 UCBs accounted for 53.9 per cent deposits continuing in the higher size brackets.
of total advances of UCBs. In terms of assets, The increasing share of large UCBs reflects the
23.9 per cent of UCBs had assets size less than ongoing consolidation and scaling-up within the
₹50 crore while UCBs with assets more than sector.
Chart V.8 Investments Growth
(Y-o-y, per cent)
18
16
14
12
10
8
6
4
2
0.0
0
-0.1
-0.2
-2
Note: Data for 2024-25 are provisional.
Source: Off-site returns, RBI.
100
12-0202 22-1202 32-2202 42-3202 52-4202
Table V.3: Investments by Urban Co-operative
Banks
(Amount in ₹ crore)
Item Amount outstanding Variation
(At end-March) (in per cent)
2024 2025 2023-24 2024-25
1 2 3 4 5
Total Investments (A + B) 1,93,644 1,93,471 1.6 -0.1
(100.0) (100.0)
A. SLR Investments 1,74,332 1,72,799 1.5 -0.9
[(i) + (ii)+ (iii)] (90.0) (89.3)
(i) Central 1,06,270 99,916 -0.4 -6.0
Government (54.9) (51.6)
Securities
(ii) State Government 67,673 71,213 4.6 5.2
Securities (34.9) (36.8)
(iii) Other Approved 389 1,670 27.9 329.5
Securities (0.2) (0.9)
B. Non-SLR Investments 19,312 20,672 1.9 7.0
(10.0) (10.7)
Notes: 1. Data for 2025 are provisional.
2. Figures in parentheses are the proportion to total
investments (in per cent).
3. Components may not add up to the total due to rounding off.
Source: Off-site returns, RBI.
Chart V.9: Composition of Investments of UCBs
(At end-March, share in per cent)
100
10.7
90 0.9
80
70 36.8
60
50
40
30
51.6
20
10
0
2015 2020 2025
All UCBs Non-scheduled UCBs Central government securities State government securities
Scheduled UCBs
Other SLR approved securities Non-SLR investments
Note: Data for 2025 are provisional.
Source: Off-site returns, RBI.CO-OPERATIVE BANKS
Table V.4: Distribution of UCBs by Size of across constituents. Operating profits of non-
Deposits, Advances and Assets
scheduled UCBs increased by 8.4 per cent, driven
(At end-March 2025)
by growth in non-interest income.5 In contrast,
(Amount in ₹ crore)
operating profits of scheduled UCBs contracted
Item Deposits Advances Assets
by 5.5 per cent, reflecting a faster increase in
No. of Amount No. of Amount No. of Amount
UCBs UCBs UCBs total expenditure relative to total income (Table
1 2 3 4 5 6 7
V.5 and Appendix Table V.1).
0 ≤ X < 10 76 426 161 894 43 250
10 ≤ X < 25 158 2,772 240 4,024 107 1,901
V.16. Overall, UCBs’ net profits after tax grew by
25 ≤ X < 50 236 8,741 273 9,777 198 7,201
14.2 per cent in 2024-25, on top of 52 per cent
50 ≤ X < 100 289 20,811 253 17,978 297 21,542
100 ≤ X < 250 320 52,010 267 41,517 360 58,874 growth recorded in 2023-24, aided by reduced
250 ≤ X < 500 167 59,779 137 48,504 193 68,858
provisioning pressure on account of improved
500 ≤ X < 1000 109 74,624 69 48,066 136 96,262
1000 ≤ X 102 3,65,252 57 1,99,464 123 4,83,841 asset quality. Improvement in profitability was
Total 1,457 5,84,415 1,457 3,70,225 1,457 7,38,729
also evident in higher returns on assets (RoA)
Notes: 1. Data are provisional.
2. ‘X’ indicates amounts of deposits, advances, and assets. and returns on equity (RoE). Net interest margin
Source: Off-site returns, RBI.
(NIM) of UCBs, however, moderated due to faster
3.2. Financial Performance and Profitability growth of interest expenditure compared to
V.15. The financial performance of UCBs interest income (Table V.6). Within UCBs, non-
improved during 2024-25, albeit with a variation scheduled UCBs had higher NIM and RoA than
Table V.5: Financial Performance of Scheduled and Non-scheduled Urban Co-operative Banks
(Amount in ₹ crore)
Item Scheduled UCBs Non-scheduled UCBs All UCBs All UCBs (y-o-y growth in
per cent)
2023-24 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24 2024-25
1 2 3 4 5 6 7 8 9
A. Total Income [i+ii] 24,161 26,059 31,036 33,293 55,198 59,352 5.4 7.5
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0)
i. Interest Income 21,476 23,065 29,223 30,296 50,698 53,361 6.5 5.3
(88.9) (88.5) (94.2) (91.0) (91.8) (89.9)
ii. Non-interest Income 2,686 2,993 1,814 2,997 4,499 5,990 -5.9 33.1
(11.1) (11.5) (5.8) (9.0) (8.2) (10.1)
B. Total Expenditure [i+ii] 19,785 21,925 25,985 27,819 45,771 49,745 7.9 8.7
(100.0) (100.0) (100.0) (100.0) (100.0) (100.0)
i. Interest Expenditure 12,838 14,542 17,444 18,850 30,282 33,392 10.2 10.3
(64.9) (66.3) (67.1) (67.8) (66.2) (67.1)
ii. Non-interest Expenditure 6,947 7,383 8,541 8,969 15,488 16,352 3.7 5.6
(35.1) (33.7) (32.9) (32.2) (33.8) (32.9)
of which: Staff Expenses 2,999 3,288 4,367 4,785 7,365 8,073 2.1 9.6
C. Profits
i. Operating Profits 4,376 4,133 5,051 5,474 9,427 9,607 -5.4 1.9
ii. Provision and Contingencies 1,214 1,154 1,912 1,568 3,127 2,722 -43.9 -12.9
iii. Provision for Taxes 752 737 868 803 1,620 1,540 22.8 -4.9
iv. Net Profit before Taxes 3,162 2,980 3,139 3,905 6,300 6,885 43.2 9.3
v. Net Profit after Taxes 2,410 2,243 2,270 3,102 4,680 5,345 52.0 14.2
Note: 1. Data for 2024-25 are provisional.
2. Figures in parentheses are the proportion to total income/ expenditure (in per cent).
3. Components may not add up to the total due to rounding off.
Source: Off-site returns, RBI.
5 The increase in non-interest income is driven by increase in miscellaneous income, profit on sale of fixed assets, and profit on
trading and sale of securities.
101Report on Trend and Progress of Banking in India 2024-25
Table V.6: Select Profitability Indicators of Table V.7: CRAR-wise Distribution of UCBs
UCBs (At end-March 2025)
(Per cent) (Number of banks)
Item Scheduled Non-scheduled All CRAR Scheduled Non- All
UCBs UCBs UCBs (in per cent) UCBs scheduled UCBs
UCBs
2023-24 2024-25 2023-24 2024-25 2023-24 2024-25
1 2 3 4
1 2 3 4 5 6 7
CRAR < 3 1 28 29
Return on 0.77 0.68 0.63 0.79 0.70 0.74
Assets 3 <= CRAR < 6 2 8 10
6 <= CRAR < 9 0 10 10
Return on 8.54 7.37 6.18 7.40 7.18 7.39
Equity 9 <= CRAR < 12 0 66 66
12 <= CRAR 46 1,296 1,342
Net Interest 3.60 3.38 4.08 3.83 3.86 3.62
Margin Total 49 1,408 1,457
Note: Data for 2024-25 are provisional. Note: Data are provisional.
Source: Off-site returns, RBI. Source: Off-site returns, RBI.
scheduled UCBs (Chart V.10a and b). During H1: entirely to the co-operative banks placed under
2025-26, RoA and RoE of UCBs stood at 0.8 per liquidation/ all-inclusive directions (AID) of the
cent and 8.2 per cent, respectively. Reserve Bank.
3.3. Penalties and DICGC Claims
3.4. Capital Adequacy
V.17. The number of instances of penalty
V.18. As per the revised regulatory framework
imposition on co-operative banks (including
effective from April 1, 2023, a minimum capital
UCBs) increased by 22.8 per cent to 264 during
to risk-weighted assets ratio (CRAR) of 9 per cent
2024-25. The total amount of penalty imposed
for Tier 1 UCBs and 12 per cent for Tier 2 to 4
also increased to ₹15.6 crore during 2024-25
UCBs are to be maintained on an ongoing basis.
from ₹12.1 crore in the previous year (Table IV.15
At end-March 2025, 92.1 per cent of the UCBs
in Chapter IV). The Deposit Insurance and Credit
Guarantee Corporation (DICGC) settled claims maintained CRAR above 12 per cent (Table V.7
of ₹476 crore during 2024-25, which pertained and Appendix Table V.2).
Chart V.10: Profitability Indicators
a. Net Interest Margin b. Return on Assets
(Per cent) (Per cent)
4.5
4.0
3.8
3.5 3.6
3.4
3.0
2.5
2.0
1.5
Note: Data for 2025 are provisional.
Source: Off-site returns, RBI.
102
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0.8 0.79
0.74
0.68
0.6
0.4
0.2
0.0
All UCBs Non-scheduled UCBs All UCBs Non-scheduled UCBs
Scheduled UCBs Scheduled UCBsCO-OPERATIVE BANKS
Table V.8: Component-wise Capital Adequacy of UCBs
(At end-March)
(Amount in ₹ crore)
Item Scheduled UCBs Non-scheduled UCBs All UCBs
2024 2025 2024 2025 2024 2025
1 2 3 4 5 6 7
1. Capital Funds 25,966 28,320 32,560 36,782 58,526 65,101
i) Tier 1 Capital 20,128 21,960 28,423 32,401 48,550 54,362
ii) Tier 2 Capital 5,838 6,359 4,138 4,380 9,976 10,740
2. Risk-weighted Assets 1,57,720 1,69,923 1,78,224 1,91,098 3,35,944 3,61,022
3. CRAR (1 as per cent of 2) 16.5 16.7 18.3 19.2 17.4 18.0
Of which:
Tier 1 12.8 12.9 15.9 17.0 14.5 15.1
Tier 2 3.7 3.7 2.3 2.3 3.0 3.0
Notes: 1. Data for end-March 2025 are provisional.
2. Components may not add up to the total due to rounding off.
Source: Off-site returns, RBI.
V.19. During 2024-25, UCBs remained well improved for the fourth consecutive year with
capitalised, with CRAR improving to 18.0 per GNPA ratio at 6.2 per cent at end-March 2025,
cent from 17.4 per cent a year ago, primarily down from the peak of 12.1 per cent at end-
March 2021 (Chart V.12). At end-September
on account of an improvement in Tier 1 capital
2025, GNPA ratio of UCBs was 7.6 per cent as
ratio (Table V.8 and Chart V.11a). Within UCBs,
compared with 9.3 per cent a year ago.
non-scheduled UCBs have maintained a higher
CRAR than scheduled UCBs (Chart V.11b). The V.21. The improvement in asset quality during
CRAR remained stable at 18.0 per cent at end- 2024-25 was broad based, with decrease in
GNPA ratio observed in both scheduled and
September 2025.
non-scheduled UCBs. Along with the fall in
3.5. Asset Quality
GNPAs, the provision coverage ratio (PCR)
V.20. The asset quality of UCBs, measured of UCBs improved further to 90.1 per cent.
by gross non-performing assets (GNPA) ratio, This improvement was partly due to the
Chart V.11: Capital to Risk-weighted Assets Ratio
(At end-March)
a. UCBs vis-à-vis SCBs b. Scheduled UCBs vis-à-vis Non-scheduled UCBs
(Per cent) (Per cent)
20
18.0
17.4
15
10
5
0
Note: Data for SCBs exclude regional rural banks.
Sources: Off-site returns, RBI; and annual accounts of respective banks.
103
1202 2202 3202 4202 5202
20 19.2
16.7
15
10
5
0
All UCBs SCBs
1202 2202 3202 4202 5202
Scheduled UCBs Non-scheduled UCBsReport on Trend and Progress of Banking in India 2024-25
104
7.1
9.8
Chart V.13: Stress in Large Borrowal Accounts
(At end-March, per cent of funded amount)
2024 2025
SMA: Special mention accounts; NPAs: Non-performing assets.
Note: Large borrowal accounts are defined as accounts with exposure
of ₹5 crore and above.
Source: Off-site returns, RBI.
8.02
0.3
4.1
4.7
1.32
7.5
7.2
2.51
2.12
5.3
30
25
20
15
10
5
0
0-AMS 1-AMS 2-AMS sAPN 0-AMS 1-AMS 2-AMS sAPN 0-AMS 1-AMS
Scheduled UCBs Non-scheduled UCBs All UCBs
2-AMS sAPN
₹5 crore and above, moderated during 2024-
Chart V.12: Provisioning and Asset Quality of UCBs
(At end-March, per cent, left scale; at end-March, per cent, right scale) 25. Its share in UCBs’ total lending decreased
14 100 to 23.4 per cent at end-March 2025, though
90.1
12 scheduled UCBs have a higher proportion (40.9
80
per cent) relative to non-scheduled UCBs (8.2
10
per cent). Large borrowal accounts contributed
60
8
to about one-third of total GNPAs of UCBs, with
6.2
6 40 wide variation between scheduled UCBs (64.8
4 per cent) and non-scheduled UCBs (16.6 per
20 cent). For the sector as a whole, special mention
2
accounts-1 (SMA-1) declined during the year,
0 0
while SMA-0 accounts increased, mainly driven
by scheduled UCBs (Chart V.13).
GNPA ratio Provision coverage ratio
Note: Data for 2025 are provisional. 3.6. Priority Sector Lending
Source: Off-site returns, RBI.
V.23. As per the priority sector lending (PSL)
guidelines of March 2025, the Reserve Bank
harmonisation of UCBs’ provisioning norms
revised the overall PSL target for UCBs to 60
for standard advances.6 Net NPA ratio of UCBs
per cent of adjusted net bank credit (ANBC) or
decreased to 0.7 per cent at end-March 2025
from 1.2 per cent a year ago (Table V.9). credit-equivalent amount of off-balance sheet
exposure (CEOBSE), whichever is higher,
V.22. Exposure of UCBs to large borrowal
accounts, defined as accounts with exposure of
Table V.9: Non-Performing Assets of UCBs
(At end-March 2025)
Item Scheduled Non-scheduled All UCBs
UCBs UCBs
2024 2025 2024 2025 2024 2025
1 2 3 4 5 6 7
Gross NPAs 8,422 8,015 16,973 15,057 25,395 23,072
(₹ crore)
Gross NPA Ratio 5.3 4.7 9.1 7.6 7.3 6.2
(Per cent)
Net NPAs (₹ crore) 1,960 1,561 1,954 711 3,914 2,273
Net NPA Ratio 1.3 0.9 1.1 0.4 1.2 0.7
(Per cent)
Provisioning 6,462 6,454 15,019 14,346 21,481 20,800
(₹ crore)
Provisioning 76.7 80.5 88.5 95.3 84.6 90.1
Coverage Ratio
(Per cent)
Note: Data for 2025 are provisional.
Source: Off-site returns, RBI.
1202 2202 3202 4202 5202
6 The erstwhile Tier 1 UCBs, which were maintaining standard asset provision of 0.25 per cent on ‘all other loans and advances not
included above’, were required to increase the provisioning requirement in a staggered manner to reach: 0.30 per cent by March 31,
2024; 0.35 per cent by September 30, 2024; and 0.40 per cent by March 31, 2025.CO-OPERATIVE BANKS
Table V.10: Composition of Credit to Priority
Chart V.14: Priority Sector Lending -
Sectors by UCBs
Target and Achievement
(Per cent) (At end-March)
80 (Amount in ₹ crore)
70.7 Item 2024 2025
70 Amount Share Amount Share
in Total in Total
60 60.0 Advances Advances
(per cent) (per cent)
50 1 2 3 4 5
1. Agriculture [(i)+(ii)+(iii)] 16,344 4.7 17,032 4.6
40 (i) Farm Credit 12,343 3.6 13,203 3.6
(ii) Agriculture 1,224 0.4 1,028 0.3
30 Infrastructure
(iii) Ancillary Activities 2,777 0.8 2,801 0.8
19.8
20
14.6 2. Micro Small and Medium 1,29,130 37.2 1,35,228 36.5
Enterprises [(i) + (ii) +
10 11.5 (iii) + (iv)]
7.5
(i) Micro Enterprises 56,340 16.2 62,609 16.9
0
Total priority Micro Weaker (ii) Small Enterprises 48,653 14.0 47,791 12.9
sector advances enterprises sections (iii) Medium Enterprises 23,554 6.8 24,407 6.6
2022-23 2023-24 Target (iv) Advances to Khadi 583 0.2 422 0.1
Source: RBI. and Village Industries
(Including ‘Other
Finance to MSMEs’)
effective from 2024-25.7 During 2023-24, UCBs 3. Export Credit 723 0.2 101 0.0
4. Education 3,226 0.9 3,526 1.0
achieved the overall PSL target of 60 per cent, as
5. Housing 29,269 8.4 30,688 8.3
well as the sub-targets of 7.5 per cent for micro 6. Social Infrastructure 1,038 0.3 977 0.3
7. Renewable Energy 1,419 0.4 1,546 0.4
enterprises and 11.5 per cent for weaker sections
8. Others 25,288 7.3 17,091 4.6
(Chart V.14). 9. Total (1 to 8) 2,06,438 59.5 2,06,189 55.7
of which, Loans to Weaker 42,771 12.3 44,227 11.9
V.24. At end-March 2025, micro, small and Sections
Notes: 1. Data for 2025 are provisional.
medium enterprises (MSMEs) had the largest 2. Percentages are with respect to the total credit of UCBs.
3. Components may not add up to the total due to rounding off.
share of UCBs’ total advances, although it
Source: Off-site returns, RBI.
decreased marginally to 36.5 per cent driven
level. They provide affordable and timely credit
by small enterprises. In contrast, the share of
for farming and allied activities, supporting
credit to micro enterprises increased, indicating
improved credit flow to smaller borrowers. agricultural production and rural development.
Priority lending in ‘others’ category declined, However, due to increasing reach of commercial
leading to moderation in the share of total banks via technology, branch expansion and
priority sector lending in total advances during business correspondents, the share of RCCs in
2024-25 (Table V.10). total agriculture credit has moderated over the
4. Rural Credit Co-operatives years (Table V.11).
V.25. Rural credit co-operatives (RCCs) play V.26. In the rural credit co-operative structure,
an important role in agricultural credit delivery at end-March 2025, there were 34 state co-
through their wide network at the grassroots operative banks (StCBs) with 2,146 branches
7 The earlier circular dated June 8, 2023 (which now stands superseded by circular dated March 24, 2025) required UCBs to achieve
an overall target of 75 per cent of ANBC or CEOBSE, whichever is higher, by 2025-26, with interim targets of 60 per cent in 2023-24
and 65 per cent in 2024-25.
105Report on Trend and Progress of Banking in India 2024-25
Table V.11: Share in Credit Flow to Agriculture institutions primarily extend crop loans and
(Per cent) provide working capital support to farmers and
Item Rural Credit Regional Rural Commercial
rural artisans. At end-March 2024, the long-
Co-operatives Banks Banks
term co-operative structure comprised 13 state
1 2 3 4
2021-22 13.1 11.0 75.9 co-operative agriculture and rural development
2022-23 11.0 11.2 77.8
2023-24 9.5 11.1 79.4 banks (SCARDBs) with 695 branches, and 609
2024-25 9.0 10.8 80.2
primary co-operative agriculture and rural
Note: Data for commercial banks exclude regional rural banks.
Source: NABARD (ENSURE portal). development banks (PCARDBs). These long-
term institutions cater to capital-intensive needs
and 351 district central co-operative banks in agriculture, including land development, farm
(DCCBs) operating through 13,825 branches. mechanisation, minor irrigation, rural industries
At end-March 2024, within short-term co- and housing.
operatives, the network of 1,07,641 primary V.27. RCCs are structurally different from UCBs
agricultural credit societies (PACS) covered over in terms of their balance sheet composition. While
6.5 lakh villages (Table V.12). These short-term UCBs mainly depend on deposits to raise funds,
Table V.12: A Profile of Rural Co-operatives
(At end-March 2024)
(Amount in ₹ crore)
Item Short-term Long-term Rural Credit
Co-operatives
StCBs DCCBs PACS SCARDBsP PCARDBsP Mar-23 Mar-24
1 2 3 4 5 6 7 8
A. Number of Co-operatives 34 351 1,07,641 13 609 1,07,961 1,08,648
B. Balance Sheet Indicators
i. Owned Funds (Capital + Reserves) 33,392 60,362 59,478 6,743 5,658 1,46,171 1,65,633
ii. Deposits 2,56,819 4,76,610 2,03,532 2,679 1,804 8,77,263 9,41,444
iii. Borrowings 1,73,116 1,61,728 2,27,931 12,517 16,840 5,32,778 5,92,132
iv. Loans and Advances 2,94,577 4,13,161 2,12,601 21,048 15,922 8,73,466 9,57,310
v. Total Liabilities/Assets 4,88,266 7,65,577 4,29,103^ 28,851 33,324 16,18,761 17,45,121
C. Financial Performance
i. Institutions in Profits
a. No. 32 312 49,238 9 345 48,492 49,936
b. Amount of Profit 2,727 3,297 2,609 288 220 8,512 9,142
ii. Institutions in Loss
a. No. 2 39 37,662 4 263 37,660 37,970
b. Amount of Loss 35 1,403 3,524 563 421 4,989 5,947
iii. Overall Profits (+)/Loss (-) 2,691 1,894 -915 -275 -201 3,523 3,195
D. Non-performing Assets
i. Amount 14,537 36,958 53,149^^ 8,070 6,144 1,08,002 1,18,857
ii. As Percentage of Loans Outstanding 4.9 8.9 26.2 38.3 38.6 12.4 12.4
E. Recovery of Loans to Demand Ratio* (Per cent) 92.4 76.8 77.6 40.8 43.1 - -
StCBs: State Co-operative Banks, DCCBs: District Central Co-operative Banks, PACS: Primary Agricultural Credit Societies, SCARDBs: State Co-operative
Agriculture and Rural Development Banks, PCARDBs: Primary Co-operative Agriculture and Rural Development Banks.
P: Data are provisional.
^: Working capital.
^^: Total overdue.
*: This ratio captures the share of outstanding demand amount (amount due) that has been recovered at end-June 2023.
-: Not available.
Notes: 1. Data for financial year 2023-24 are available in respect of 608 out of 609 PCARDBs.
2. Components may not add up to the total due to rounding off.
Sources: NABARD and NAFSCOB.
106CO-OPERATIVE BANKS
RCCs rely heavily on borrowings. At end-March
Chart V.15: Share of Rural Credit Co-operatives in
2024, deposits constituted 78.5 per cent of UCBs’ Total Assets of the Co-operative Sector
(Per cent)
total liabilities as compared to 53.9 per cent for 72
0.7 71.2
RCCs. In contrast, the share of borrowings was
71
1.2
33.9 per cent for RCCs as compared with 0.8 per
70
cent in case UCBs. 1.9
69
V.28. Owing to faster growth of credit, deposits
68
0.4
and borrowing in RCCs relative to UCBs, the 66.9
67
share of RCCs in total assets/liabilities of the co-
66
operatives (urban and rural combined) expanded
65
to 71.2 per cent at end-March 2024 (Chart V.15).
64
V.29. Within rural co-operatives, the share Mar-20 2020-21 2021-22 2022-23 2023-24 Mar-24
of short-term credit co-operatives increased Total Increase
Note: Increase may not add up to total due to rounding off.
steadily over the years, reaching 96.4 per cent
Sources: RBI; NABARD; and NAFSCOB.
at end-March 2024 (Chart V.16a). Short-term
and long-term credit co-operatives differ in the challenges of lending portfolio concentration
terms of their balance sheet composition and compared to UCBs.
soundness indicators. While short-term credit
V.30. RCCs remained profitable, albeit with
co-operatives depend primarily on deposits,
some moderation in net profits during 2023-24,
long-term co-operatives rely more on borrowings
driven by losses in PACS and long-term credit
and owned funds. The asset quality of long-term
co-operatives. The number of profit-making
co-operatives remains relatively weak, with a
higher NPA ratio compared to their short-term RCCs as per cent of total RCCs improved to
counterparts (Chart V.16b). RCCs continue to face 46.0 per cent at end-March 2024, from 44.9 per
Chart V.16: Long-term vis-à-vis Short-term RCCs
a. Share in Total Assets of RCCs b. Balance Sheet and Soundness Indicators
(At end-March, per cent) (At end-March 2024, per cent)
70
100 3.6 59.5
60
90 55.7 54.7
80 50 47.2
70 40 38.4
60 33.4
50 30
40 96.4 19.9
20
30
11.4
20 10 9.1 7.2
10 0
0 Owned Deposits to Borrowings Loans and NPAs to
2016-19 2020-23 2024 funds to total total to total advances to loans and
(Period average) (Period average) liabilities liabilities liabilities total assets advances
Short-term credit co-operatives Long-term credit co-operatives Short-term credit co-operatives Long-term credit co-operatives
Sources: NABARD and NAFSCOB.
107Report on Trend and Progress of Banking in India 2024-25
cent a year ago. Asset quality of RCCs remained 4.1.1. State Co-operative Banks
stable during the year, as improvement in StCBs,
V.33. StCBs, positioned at the apex level of the
DCCBs, PCARDBs was offset by deterioration in
short-term co-operative credit structure, play a
that of PACS and SCARDBs.
crucial role in channelising resources to DCCBs
V.31. In April 2025, the Reserve Bank accorded and PACS. They provide refinance, liquidity
regulatory approval for setting up of a shared support, and technical assistance to the lower
service entity (SSE) for rural co-operative tiers of the co-operative credit system, thereby
banks. NABARD, in co-ordination with the facilitating the flow of short-term agricultural
Ministry of Cooperation, Government of India credit.
is establishing an SSE named Sahakar Sarathi
Balance Sheet Operations
Private Limited (SSPL), to provide centralised
V.34. During 2024-25, the balance sheet of
technological, operational, and support services
StCBs expanded by 7.7 per cent as compared
for rural co-operative banks. The initiative is
with 8.1 per cent a year ago. On the liability side,
designed to enhance service quality, reduce
deposits growth accelerated to 6.8 per cent from
costs, and enable the swift adoption of emerging
6.0 per cent in previous year (Table V.13). The
technologies. Further, to enhance transparency
share of current account and savings account
and accountability in the co-operative banking
sector, the Reserve Bank-Integrated Ombudsman Table V.13: Liabilities and Assets of
State Co-operative Banks
Scheme has been extended to include StCBs and
(Amount in ₹ crore)
DCCBs from November 1, 2025.
Item At end-March Percentage
Variation
4.1. Short-term Rural Credit Co-operatives
2024 2025P 2023-24 2024-25P
1 2 3 4 5
V.32. Short-term rural credit co-operatives –
1. Capital 10,531 10,992 7.7 4.4
(2.2) (2.1)
comprising StCBs at the apex level, DCCBs at the
2. Reserves 22,861 26,220 11.3 14.7
district level, and PACS at the base level – play a (4.7) (5.0)
3. Deposits 2,56,819 2,74,183 6.0 6.8
pivotal role in meeting the short-term and seasonal (52.6) (52.2)
credit needs of the agricultural sector and allied 4. Borrowings 1,73,116 1,89,549 11.7 9.5
(35.5) (36.1)
activities such as dairy and fisheries. Over time,
5. Other Liabilities 24,940 24,781 2.9 -0.6
(5.1) (4.7)
their operations are expanding to cover non-
Total Liabilities/Assets 4,88,266 5,25,725 8.1 7.7
farm activity and microfinance. The short-term (100.0) (100.0)
1. Cash and Bank Balances 22,661 22,764 6.7 0.5
co-operative structure operates in two, three or
(4.6) (4.3)
mixed-tier formats. Two-tier systems are largely 2. Investments 1,55,826 1,68,690 4.8 8.3
(31.9) (32.1)
prevalent in the north-eastern states where StCBs 3. Loans and Advances 2,94,577 3,20,004 10.9 8.6
(60.3) (60.9)
lend directly through their branches and PACS,
4. Accumulated Losses 1,146 1,185 -15.0 3.4
while in the three-tier system, StCBs function as (0.2) (0.2)
5. Other Assets 14,057 13,081 -6.3 -6.9
apex banks for DCCBs operating at the district (2.9) (2.5)
P: Provisional.
level. In states with mixed-tier structure, StCBs
Notes: 1. Figures in parentheses are the proportion to total liabilities/
function directly in some districts and through assets (in per cent).
2. Components may not add up to the total due to rounding off.
DCCBs in others. Source: NABARD.
108CO-OPERATIVE BANKS
(CASA) deposits in total deposits moderated to Profitability
17.4 per cent (from 18.6 per cent a year ago),
V.37. During 2024-25, despite a fall in
reflecting their limited branch network. On the
provisioning, net profits of StCBs declined as
contrary, the share of borrowings increased to operating expenses increased, and growth in
36.1 per cent from 35.5 per cent a year ago, interest expended outpaced the growth in interest
driven by borrowings from NABARD. income (Table V.15). The increase in interest
expended partly reflected a fall in the share of
V.35. On the assets side, loans and advances
low-cost CASA deposits.
increased by 8.6 per cent compared with 10.9
per cent a year ago. Agriculture loans accounted V.38. During 2024-25, 32 out of 34 StCBs
for 43.4 per cent of total loans and advances, reported profits. StCBs in northern, north-
eastern, and central regions reported
of which 77.7 per cent were crop loans/ short-
improvement in profitability during the year,
term loans. With credit growth surpassing
whereas profits of StCBs in eastern, western
deposit growth, the credit-deposit ratio of StCBs
and southern region moderated (Chart V.17 and
increased further to 116.7 per cent at end-March
Appendix Table V.3).
2025 from 114.7 per cent a year ago. Due to
higher growth in investments placed as term Table V.15: Financial Performance of
deposits with other banks, the share of SLR State Co-operative Banks
investments in total investments moderated to Item Amount Variation
(in ₹ crore) (in per cent)
45.8 per cent at end-March 2025 from 51.2 per
2023-24 2024-25P 2023-24 2024-25P
cent a year ago. 1 2 3 4 5
A. Income (i+ii) 32,401 36,134 17.2 11.5
V.36. At end-March 2025, 24 out of the 34 StCBs (100.0) (100.0)
i. Interest Income 30,974 34,329 16.2 10.8
were scheduled banks. The business growth of
(95.6) (95.0)
scheduled StCBs, both in terms of deposits and ii. Other Income 1,427 1,804 43.6 26.4
(4.4) (5.0)
credit, decelerated during 2024-25 (Table V.14).
B. Expenditure (i+ii+iii) 29,710 33,524 17.9 12.8
(100.0) (100.0)
Table V.14: Select Balance Sheet Indicators of
i. Interest Expended 23,793 27,158 24.9 14.1
Scheduled State Co-operative Banks (80.1) (81.0)
(At end-March) ii. Provisions and 1,979 1,810 3.0 -8.6
(Amount in ₹ crore) Contingencies (6.7) (5.4)
Item 2024 2025
1 2 3 iii. Operating Expenses 3,938 4,557 -6.8 15.7
(13.3) (13.6)
Deposits 2,15,540 2,19,976
(5.4) (2.1) Of which, Wage Bill 2,077 2,178 0.8 4.9
Credit 2,78,147 2,97,426 (7.0) (6.5)
(8.8) (6.9)
C. Profits
SLR Investments 77,525 79,410
i. Net Interest Income 7,181 7,171 -5.7 -0.1
(3.8) (2.4)
ii. Operating Profits 4,670 4,419 6.7 -5.4
Credit plus SLR Investments 3,55,671 3,76,836
(7.6) (6.0) iii. Net Profits 2,691 2,609 9.5 -3.0
Notes: 1. Data pertain to the last reporting Friday of March of the P: Provisional.
financial year. Notes: 1. Figures in parentheses are the proportion to total income/
2. Figures in parentheses are growth rates over the previous expenditure (in per cent).
year, in per cent. 2. Components may not add up to the total due to rounding off.
Source: Form B under Section 42 of RBI Act. Source: NABARD.
109Report on Trend and Progress of Banking in India 2024-25
Table V.16: Soundness Indicators of State Co-
Chart V.17: Regional Distribution of
State Co-operative Banks' Profits operative Banks
(Amount in (cid:31) crore) (Amount in ₹ crore)
900
Item At end-March Percentage
Variation
750
2024 2025P 2023-24 2024-25P
1 2 3 4 5
600
A. Total NPAs (i+ii+iii) 14,537 15,407 1.7 6.0
i. Sub-standard 4,974 5,980 7.9 20.2
450 (34.2) (38.8)
ii. Doubtful 8,237 7,782 -0.7 -5.5
(56.7) (50.5)
300
iii. Loss 1,326 1,645 -4.9 24.1
(9.1) (10.7)
150 B. Gross NPA Ratio 4.9 4.8
(Per cent)
0 C. Net NPA Ratio (Per cent) 2.0 2.0
North- Central Northern Eastern Southern Western
D. Provision Coverage Ratio 68.5 64.1
eastern region region region region region
region (Per cent)
2023-24 2024-25* E. Recovery to Demand 92.4 87.5
*: Provisional Ratio (Per cent)
Source: NABARD.
P: Provisional.
Notes: 1. Figures in parentheses are the proportion to total NPAs (in
per cent).
Asset Quality 2. Recovery-to-demand ratio captures the share of outstanding
demand amount (amount due) that has been recovered at end-
June 2024 and 2025.
V.39. The asset quality of StCBs improved for
Source: NABARD.
the fourth consecutive year, with the GNPA ratio
They mobilise funds through public deposits,
declining to 4.8 per cent at end-March 2025 from
borrowings from StCBs, and refinance from
6.7 per cent at end-March 2021. The share of
NABARD. DCCBs have better access to CASA
doubtful assets in total NPAs reduced further to
deposits compared to StCBs due to their larger
50.5 per cent from 56.7 per cent a year ago (Table
branch network. Their total advances and
V.16). Reflecting the moderation in GNPA and the
provision coverage ratio during the year, net NPA
Chart V.18: Capital Adequacy of State Co-operative Banks
ratio remained stable at 2.0 per cent. Except the (At end-March, per cent)
15
central region, the GNPA ratio declined across all 13.6
other regions (Appendix Table V.3). 12 11.8
Capital Adequacy
9
V.40. At the consolidated level, StCBs remained
well capitalised, with CRAR increasing to 13.6
6
per cent at end-March 2025 from 12.9 per cent a
year ago (Chart V.18). At the bank level, only two
3
StCBs reported a CRAR lower than the regulatory
minimum of 9 per cent.
0
2021 2022 2023 2024 2025
4.1.2. District Central Co-operative Banks
CRAR Tier 1 capital
V.41. DCCBs function as the second tier in Regulatory minimum
Source: NABARD.
the three-tier cooperative banking structure.
110CO-OPERATIVE BANKS
agricultural advances are tilted towards PACS/ credit-deposit ratio increased to 87.6 per cent
societies. at end-March 2025 from 86.7 per cent a year
ago. The share of agriculture loans in total loans
Balance Sheet Operations
and advances marginally decreased to 53.6 per
V.42. During 2024-25, balance sheet growth of
cent from 54.6 per cent in the previous year.
DCCBs decelerated mainly reflecting slowdown in
Investments of DCCBs were primarily placed as
deposits growth on the liabilities side, and loans
term deposits with other banks (57.0 per cent),
and advances on the assets side (Table V.17). On
while statutory liquidity ratio (SLR) investments
the liabilities side, CASA deposits accounted for
constituted 38.4 per cent of total investments.
40.5 per cent of total deposits. Borrowings from
Profitability
StCBs and NABARD constituted 89.3 per cent
and 9.2 per cent, respectively, of total borrowings V.44. During 2024-25, growth in net interest
of DCCBs. income of DCCBs moderated as interest
expenditure grew faster than interest income.
V.43. On the assets side, growth in credit
However, net profits increased by 12.1 per cent,
moderated as compared to last year, while
aided by lower provisioning requirements on
growth in investment increased. Nonetheless,
account of improved asset quality and increase
with credit growth outpacing deposit growth, the
in other income (Table V.18).
Table V.17: Liabilities and Assets of District
Central Co-operative Banks Table V.18: Financial Performance of District
Central Co-operative Banks
(Amount in ₹ crore)
Item At end-March Percentage Item Amount Percentage
Variation (in ₹ crore) Variation
2024 2025P 2023-242024-25P 2023-24 2024-25P 2023-24 2024-25P
1 2 3 4 5 1 2 3 4 5
1. Capital 28,661 30,940 8.2 8.0 A. Income (i+ii) 52,408 58,181 13.2 11.0
(3.7) (3.7) (100.0) (100.0)
2. Reserves 31,701 36,472 10.3 15.1 i. Interest Income 49,989 55,520 13.7 11.1
(4.1) (4.4) (95.4) (95.4)
3. Deposits 4,76,610 5,09,002 10.0 6.8
(62.3) (61.5) ii. Other Income 2,420 2,661 3.3 10.0
(4.6) (4.6)
4. Borrowings 1,61,728 1,79,760 9.9 11.1
(21.1) (21.7) B. Expenditure (i+ii+iii) 50,515 56,057 13.7 11.0
(100.0) (100.0)
5. Other Liabilities 66,876 71,450 8.7 6.8
(8.7) (8.6) i. Interest Expended 32,731 37,543 18.6 14.7
(64.8) (67.0)
Total Liabilities/Assets 7,65,577 8,27,625 9.8 8.1
(100.0) (100.0) ii. Provisions and 5,733 5,700 1.7 -0.6
1. Cash and Bank Balances 38,705 40,904 14.6 5.7 Contingencies (11.3) (10.2)
(5.1) (4.9) iii. Operating Expenses 12,051 12,815 7.7 6.3
2. Investments 2,65,692 2,88,716 7.2 8.7 (23.9) (22.9)
(34.7) (34.9) Of which, Wage Bill 7,430 7,778 7.0 4.7
3. Loans and Advances 4,13,161 4,45,748 11.4 7.9 (14.7) (13.9)
(54.0) (53.9) C. Profits
4. Accumulated Losses 9,405 10,576 12.5 12.5
i. Net Interest Income 17,257 17,977 5.4 4.2
(1.2) (1.3)
ii. Operating Profits 7,627 7,823 1.4 2.6
5. Other Assets 38,615 41,681 6.1 7.9
(5.0) (5.0) iii. Net Profits 1,894 2,124 0.7 12.1
P: Provisional. P: Provisional.
Notes: 1. Figures in parentheses are the proportion to total liabilities/ Notes: 1. Figures in parentheses are the proportion to total income/
assets (in per cent). expenditure (in per cent).
2. Components may not add up to the total due to rounding off. 2. Components may not add up to the total due to rounding off.
Source: NABARD. Source: NABARD.
111Report on Trend and Progress of Banking in India 2024-25
V.45. During 2024-25, there were 301 profit- Table V.19: Soundness Indicators of District
Central Co-operative Banks
making DCCBs and 50 loss-making DCCBs.
(Amount in ₹ crore)
Profit-making DCCBs were geographically well-
Item At end-March Percentage
distributed across all regions, with a relatively
Variation
higher concentration in Uttar Pradesh, Madhya 2024 2025P 2023-24 2024-25P
Pradesh, Maharashtra, Tamil Nadu, and 1 2 3 4 5
Karnataka. The number of loss-making DCCBs A. Total NPAs (i+ ii + iii) 36,958 38,709 3.5 4.7
i) Sub- standard 13,433 14,288 7.1 6.4
increased during the year. Of the 50 loss-making
(36.3) (36.9)
DCCBs, nearly 82 per cent were concentrated ii) Doubtful 20,912 21,397 0.8 2.3
(56.6) (55.3)
in five states, viz., Rajasthan, Madhya Pradesh,
iii) Loss 2,612 3,024 7.0 15.8
Punjab, Bihar and Maharashtra (Appendix Table (7.1) (7.8)
V.4). B. Gross NPA Ratio 8.9 8.7
(Per cent)
Asset Quality C. Net NPA Ratio (Per cent) 3.4 3.0
D. Provision Coverage Ratio 83.9 84.3
V.46. The asset quality of DCCBs improved for (Per cent)
E. Recovery to Demand 76.8 76.4
the fifth consecutive year, with the GNPA ratio
Ratio (Per cent)
declining to 8.7 per cent at end-March 2025. The P: Provisional.
Notes: 1. Figures in parentheses are the proportion to total NPAs (in
GNPA ratio, however, remained higher than that
per cent).
of StCBs (Chart V.19). The improvement in asset 2. Recovery-to-demand ratio captures the share of outstanding
demand amount (amount due) that has been recovered at end-
quality was broad-based with the GNPA ratio June 2024 and 2025.
Source: NABARD.
declining across all regions, except the western
ratio along with the increased provision coverage
region (Appendix Table V.4). DCCBs in the central
ratio resulted in the moderation in net NPA ratio
region have the highest GNPA ratio, followed by
to 3.0 per cent at end-March 2025 from 3.4 per
those in the western region. The fall in GNPA
cent a year ago (Table V.19).
Chart V.19: GNPA Ratio: StCBs vis-à-vis DCCBs
(Per cent) Capital Adequacy
V.47. Over the years, consolidated CRAR of
DCCBs remained broadly stable at around 12 per
cent (Chart V.20). During 2024-25, the number
of DCCBs with CRAR less than the regulatory
requirement of 9.0 per cent decreased to 38 from
39 a year ago. More than 75 per cent of these
DCCBs were concentrated in four states/UTs,
viz., Madhya Pradesh (14), Punjab (6), Rajasthan
(5), and Maharashtra (4).
4.1.3. Primary Agricultural Credit Societies
V.48. PACS are the grass root level arm of the
StCBs DCCBs
StCBs: State co-operative banks; DCCBs: District central co-operative short-term credit cooperatives.8 PACS are owned
banks.
Source: NABARD. by member individuals, mostly farmers, and
8 The PACS are outside the purview of the Banking Regulation Act and are not permitted to use, as part of their name or in connection
with their business, the words “bank”, “banker”, or “banking”.
112
8.4
7.8
12
10
8
6
4
2
0
12-0202 22-1202 32-2202 42-3202 52-4202CO-OPERATIVE BANKS
V.50. The western region – with 29.4 per cent
Chart V.20: Capital Adequacy of District
Central Co-operative Banks share in total number of PACS – dominates the
(At end-March, per cent)
15 sector. However, the southern region continued
to dominate in terms of deposits, and loans
12.1
12 and advances, with a share of 76.9 per cent and
10.5
49.6 per cent, respectively. During 2023-24, the
9
number of PACS reporting profits increased to
49,238 from 47,794 a year ago. The number
6
of loss-making PACS also increased slightly
to 37,662, from 37,357 in the previous year.
3
Overall, PACS recorded lower net losses in 2023-
24 compared to the previous year. At the regional
0
2021 2022 2023 2024 2025
level, PACS in the northern, north-eastern and
CRAR Tier 1 capital
western regions reported net profits while the
Regulatory minimum
Source: NABARD. southern and central regions reported net losses
(Appendix Table V.7). There was, however, a
aim at promoting thrift and mutual help among
deterioration in the asset quality of PACS, with
the members. They cater to credit requirements
the GNPA ratio increasing to 26.2 per cent at end-
of members and provide credit-linked services
March 2024 from 23.3 per cent at end-March
like input supply, storage and marketing of
2023.
agricultural produce. At end-March 2024, PACS
V.51. Over the years, concerted efforts are being
had 16.37 crore members, and they served 4.95
made to transform PACS into modern, multi-
crore borrowers. Of the total membership, 44.2
functional entities. The Government of India is
per cent were small farmers and 24.9 per cent
administering a centrally sponsored scheme from
were from scheduled castes/ scheduled tribes.
2022-23 to 2026-27 for computerisation of PACS
Borrower to member ratio – a metric to gauge
to onboard nearly 80,000 PACS onto a unified
credit penetration of PACS – was 30.2 per cent at
enterprise resource planning (ERP) platform to
end-March 2024 as compared to 30.7 per cent a
strengthen accounting, supervision, and linkage
year ago (Appendix Table V.5).
with DCCBs and StCBs. The Government of
V.49. During 2023-24, growth in total resources India also launched a plan to establish 2 lakh
of PACS decelerated to 9.8 per cent from 14.2 new multipurpose PACS, dairy and fishery
per cent a year ago. This was led by a slowdown cooperatives within five years. PACS are also being
in deposit growth, which accounted for 41.5 per integrated into the ‘Cooperative Stack’ digital
cent of their total resources. More than 80 per ecosystem to deliver a wide range of rural services
cent of total loans and advances outstanding and financial products. Further, convergence
were for short duration and were extended for initiatives enabled PACS to function as common
agriculture. A reduction in short term loans service centres, jan aushadhi kendras, and LPG
growth contributed to deceleration in growth of and fertiliser distribution points, expanding their
total loans and advances (Appendix Table V.6). role in last-mile delivery. These measures aim to
113Report on Trend and Progress of Banking in India 2024-25
deepen financial inclusion, improve operational serves as the apex institution for all affiliated
viability, and reposition PACS as comprehensive PCARDBs operating at the district or taluka level,
rural service institutions within the cooperative which in turn, enroll members and extend credit
credit structure. to them. In some states, long-term rural credit
co-operatives follow a mixed structure, wherein
4.2. Long-term Rural Credit Co-operatives
SCARDBs operate both through PCARDBs and
V.52. Long-term rural credit co-operatives were
their own branch network.
set up to primarily cater to the long-term credit
V.54. The business model of SCARDBs and
needs of the agriculture sector and the rural
PCARDBs depends on borrowings, where
economy. The long-term structure consists of
SCARDBs primarily borrow from NABARD,
SCARDBs at the state level and PCARDBs at the
while PCARDBs receive financial assistance from
district/taluka level in a few States/UTs.9
SCARDBs (Chart V.21a). Loans and advances
V.53. At end-March 2024, the long-term rural
constituted a larger share of assets in SCARDBs
credit co-operatives were functional in 13 states/
relative to PCARDBs (Chart V.21b).
union territories, operating under unitary,
4.2.1. State Co-operative Agriculture and
federal, or mixed-tier structures.10 In the unitary
Rural Development Banks
structure, SCARDB functions through its own
network of branches across the state, with V.55. At end-March 2024, SCARDBs were
customers directly linked to the bank through operational in 13 states with 695 branches,
membership and receiving loans from its of which 46.5 per cent branches were in Uttar
branches. Under the federal structure, SCARDB Pradesh. The consolidated balance sheet size of
Chart V.21: Composition of Liabilities and Assets of Long-term Rural Credit Co-operatives
(At end-March 2024)
a. Liabilities b. Assets
(Share in per cent) (Share in per cent)
100 100
12.0
24.0 27.1 4.0 23.3
80 80
20.1
60 60
43.4
50.5 73.0
40 40
47.8
9.3
20 5.4 20
19.9
13.8
3.5 3.2 9.8 1.1 7.5 1.3
0 0
SCARDBs PCARDBs SCARDBs PCARDBs
Capital Reserves Other liabilities Cash and bank balances Investments Other assets
Deposits Borrowings Loans and advances Accumulated losses
SCARDBs: State co-operative agriculture and rural development banks; PCARDBs: Primary co-operative agriculture and rural development banks.
Source: NABARD.
9 Agricultural and rural development banks (both state and primary) are not governed by the Banking Regulation Act, 1949, and they
are not permitted to mobilise demand deposits from non-members.
10 Long-term rural credit co-operatives operate in a unitary structure in Gujarat, Jammu and Kashmir, Puducherry, Tripura, and Uttar
Pradesh; federal structure in Haryana, Karnataka, Kerala, Punjab, Rajasthan, and Tamil Nadu; and mixed structure in Himachal
Pradesh and West Bengal.
114CO-OPERATIVE BANKS
SCARDBs (net of accumulated losses) improved 4.2.2. Primary Co-operative Agriculture and
marginally during 2023-24, led by the increased Rural Development Banks
loans and advances and other assets (Appendix
V.59. At end-March 2024, there were 609
Table V.8). The accumulated losses of SCARDBs
PCARDBs operating in eight states/union
increased during the year, driven by increase in
territories. The consolidated balance sheet of
losses incurred by SCARDBs in the northern PCARDBs (net of accumulated losses) expanded
region. during 2023-24, led by the growth in investments
and other assets on the assets side, and deposits
V.56. At the consolidated level, financial
and other liabilities on the liabilities side
performance of SCARDBs weakened during
(Appendix Table V.12).
2023-24, with total income declining by 27.9
per cent following a growth of 38.9 per cent V.60. During 2023-24, the consolidated income
in the previous year (Appendix Table V.9). The of PCARDBs declined, reflecting slower growth in
interest income and contraction in other income.
decline was primarily on account of a fall in
On the contrary, their total expenditure increased,
non-interest income. On the expenditure side,
led by a significant rise in operating expenses.
total expenses declined by 8.9 per cent, driven
Consequently, operating profits moderated
by a reduction in operating expenses, although
during the year (Appendix Table V.13). PCARDBs
interest expenditure and provisioning increased.
in the northern region contributed to 74.6 per
Overall, operating profit declined by 54.4 per
cent of the total losses while the southern region
cent, and net profit turned negative (Appendix
had the highest share in profits.
Table V.9).
V.61. The asset quality of PCARDBs showed an
V.57. Asset quality of SCARDBs deteriorated
improvement during 2023-24, with the GNPA
during 2023-24, with the GNPA ratio increasing
ratio moderating to 38.6 per cent from 39.7 per
to 38.3 per cent at end-March 2024 from 36.5
cent a year ago (Appendix Table V.14). PCARDBs
per cent a year ago. In terms of composition of
in the northern region continued to record the
NPAs, the share of doubtful assets continued
highest GNPA ratio and the lowest recovery-to-
to dominate, accounting for 67.4 per cent of
demand ratio during 2023-24. In contrast, the
total NPAs at end-March 2024. The recovery-to- southern region maintained the lowest GNPA
demand ratio declined to 40.8 per cent from 44.8 ratio and the highest recovery-to-demand ratio
per cent a year earlier, indicating moderation in (Appendix Table V.15).
recovery performance (Appendix Table V.10).
5. Overall Assessment
V.58. At the regional level, financial performance
V.62. During 2024-25, UCBs continued to
of SCARDBs exhibited wide variation during
strengthen their balance sheets, with higher
2023-24 (Appendix Table V.11). Banks in
capital buffers, lower GNPA ratios and better
the southern region reported higher profits, provisioning outcomes. The introduction
supported by relatively better asset quality of the prompt corrective action framework
and recovery performance, while those in the for urban co-operative banks effective from
northern region recorded losses. April 2025, the four-tier regulatory structure,
115Report on Trend and Progress of Banking in India 2024-25
and calibrated supervisory interventions are V.63. Among rural co-operatives, both state
expected to reinforce early risk recognition co-operative banks and district central co-
and strengthen assurance functions. Financial operative banks continued to remain profitable
resilience is expected to strengthen further with with improved capital adequacy and asset
the operationalisation of National Urban Co- quality. Long-term credit co-operatives, however,
operative Finance and Development Corporation, continued to face challenges. Going forward,
an umbrella organisation for UCBs, which focus technology adoption, business diversification
on strengthening governance, ensuring liquidity, and improving operational efficiency will be
and promoting capacity building and risk important for supporting sustainable growth of
management. the co-operative sector.
116NON-BANKING FINANCIAL
VI
INSTITUTIONS
Non-banking financial companies continued to record a robust performance in 2024-25, primarily driven
by strong credit growth. They continued to maintain sound key indicators, such as asset quality and capital
adequacy, albeit with some moderation in return on assets. Housing finance companies exhibited double-
digit credit growth, accompanied by an improvement in their asset quality during the same period. All
India financial institutions showed a robust balance sheet and credit growth.
Introduction international trade; and housing. Primary
Dealers (PDs) are FIs which act as underwriters
VI.1 Non-banking financial institutions
and market makers in the Government securities
(NBFIs) are an important constituent of India’s
(G-sec) market (Chart VI.1).
financial system. Within NBFIs, the Reserve
Bank regulates non-banking financial companies VI.3 At end-March 2025, the balance sheet of
(NBFCs)1, housing finance companies (HFCs)2, NBFCs continued to expand, driven by robust
all India financial institutions (AIFIs)3, and growth in loans and advances. Key indicators,
such as capital adequacy and asset quality of
standalone primary dealers (SPDs).
NBFCs continued to remain at robust levels
VI.2 NBFCs are financial institutions (FIs)
albeit some moderation in return on assets.
which play a vital role in complementing the
Although the share of borrowing from banks
banking sector by extending credit to diverse
in total borrowing of NBFCs moderated, it
sectors and customer segments, including
continued to be significant. During the same
small businesses, microfinance borrowers, and
period, the balance sheet of HFCs also expanded
underserved segments of the population. NBFCs
in double digits. A major development in the
have emerged as key drivers of financial inclusion
HFC segment was the conversion of two HFCs
and growth of India’s financial ecosystem. HFCs into NBFC-IFC and NBFC-ICC in 2024-25.
are specialised FIs that focus on housing loans There has been an improvement in profitability
and related financing services to individuals, indicators and asset quality of the sector. The
builders, and developers. AIFIs are apex-level FIs consolidated balance sheet of AIFIs continued to
which provide long-term development finance grow in double digit at end-March 2025, thus
to sectors like agriculture; micro, small and playing an important role in financing economic
medium enterprises (MSMEs); infrastructure; activity. In 2024-25, SPDs maintained a sound
1 Although merchant banking companies, stock exchanges, companies engaged in the business of stock-broking/ sub-broking, nidhi
companies, alternative investment fund companies, insurance companies and chit fund companies are NBFCs, they have been
exempted from the requirement of registration with the Reserve Bank under section 45-IA of the RBI Act, 1934.
2 The Finance (No. 2) Act, 2019 (23 of 2019) amended the National Housing Bank Act, 1987, conferring certain powers for regulation
of HFCs to the Reserve Bank of India. The HFCs are now treated as a category of NBFC for regulatory purposes.
3 There are five AIFIs, viz., the National Bank for Agriculture and Rural Development (NABARD), the Export-Import Bank of India
(EXIM Bank), the Small Industries Development Bank of India (SIDBI), the National Housing Bank (NHB) and the National Bank for
Financing Infrastructure and Development (NaBFID).
117Report on Trend and Progress of Banking in India 2024-25
financial position, with strong capital buffers, for the upper layer (NBFC-UL), which are subject
healthy profitability, and enhanced capacity to more stringent regulations as compared to
to fulfil its role of underwriting and providing NBFCs in middle (NBFC-ML) and base (NBFC-
liquidity in the G-sec market. BL) layers (Chart VI.1).
VI.4 This chapter covers the performance of VI.6 NBFCs, a heterogeneous set of FIs, are
NBFIs in 2024-25 and the first half of 2025-26. involved in a range of activities which also form
Section 2 provides an assessment of the NBFC a basis of classification (Table VI.1). RBI is
sector, with a focus on the NBFCs in the upper encouraging self-regulation which is expected
and the middle layers. Section 3 discusses the to complement the statutory framework for
performance of the HFCs. Sections 4 and 5 better compliance, innovation, transparency,
evaluate the performance of AIFIs and PDs, fair competition, and consumer protection. In
respectively. The overall assessment is provided
October 2025, RBI recognised a self-regulatory
in Section 6.
organisation for NBFCs6, which shall frame
2. Non-Banking Financial Companies necessary best practices/ standards/ codes
within the regulatory framework prescribed by
VI.5 NBFCs are regulated by the Reserve
RBI for voluntary adoption by its members.
Bank under the scale-based regulation (SBR)
framework4 wherein differential regulations are VI.7 A noteworthy development on the
applied proportionate to scale and systemic regulatory front was the release of Digital
importance of NBFCs. As on end-March 20255, Lending Directions in May 20257 by the Reserve
15 NBFCs (including four HFCs) were identified Bank to address concerns around the methods
Chart VI.1: Structure of NBFIs under the Reserve Bank’s Regulation
(At end-March 2025)
Non-Banking Financial Institutions
Non-Banking All India Asset
Financial Financial Reconstruction
Companies (9,382) Institutions (5) Companies (27)
Top Layer (0) Ideally will remain empty, unless the Reserve Bank recognises a substantial increase in the potential systemic
risk from certain upper layer NBFC.
Upper Layer NBFCs (including HFCs) identified by the Reserve Bank. The top ten eligible
(15) NBFCs in terms of their asset size always reside in the upper layer, irrespective of any other factors.
Middle Layer
(656) NBFC-D, NBFC-ND with assets ≥ ₹ 1,000 crore, SPDs, IDFs.
Base Layer
NBFC-ND with assets < ₹ 1,000 crore, P2Ps, AAs, NOFHCs, NBFCs not availing public funds and not having
(8,711)
any customer interface.
Notes: 1. Figures in parentheses indicate the number of institutions (provisional).
2. NBFCs, viz., NBFC-ICC, NBFC-MFI, NBFC Factor, and NBFC-MGC could lie in any of the layers depending on the parameters specified under
SBR. NBFC-CIC, HFC, and IFC could lie either in the upper or middle layer.
3. Government-owned NBFCs are placed either in the base or the middle layer.
Sources: RBI and NHB.
4 NBFCs are categorised into top, upper, middle, and base layers under the SBR framework, based on their size, activity, and perceived
level of riskiness.
5 As per the list of NBFCs registered with the Reserve Bank as on December 31, 2024.
6 Recognition of Self-Regulatory Organisation for NBFCs on October 03, 2025.
7 Reserve Bank of India (Non-Banking Financial Companies-Credit Facilities) Directions, 2025.
118NON-BANKING FINANCIAL INSTITUTIONS
Table VI.1: Classification of NBFCs by Activity under the Scale-Based Regulatory Framework
S.No. Classification Activity Layer
1 2 3 4
1. Investment and Credit Lending which supports productive/ economic Any layer, depending on the parameters of the SBR.
Company (NBFC-ICC) activities, offer consumption/ personal finance and
acquisition of securities for investment.
2. NBFC-Infrastructure Finance Infrastructure loans. Middle or upper layer, as the case may be.
Company (NBFC-IFC)
3. Core Investment Company Investment in equity shares, preference shares, debt, Middle or upper layer, as the case may be.
(CIC) or loans to group companies.
4. NBFC-Infrastructure Debt Fund Refinance post commencement operations date Middle layer.
(NBFC-IDF) infrastructure projects which have completed at least
one year of commercial operations and finance toll
operate transfer projects as the direct lender.
5. NBFC-Micro Finance Institution Providing collateral free small ticket loans to Any layer, depending on the parameters of SBR.
(NBFC-MFI) economically disadvantaged groups.
6. NBFC-Factors Acquisition of receivables of an assignor by way Any layer, depending on the parameters of SBR.
of assignment or extending loans against such
assignment.
7. NBFC-Non-Operative Financial Facilitation of promoters/ promoter groups in setting Base layer.
Holding Company (NBFC- up new banks.
NOFHC)
8. Mortgage Guarantee Company Undertaking of mortgage guarantee business. Any layer, depending on the parameters of SBR.
(MGC)
9. NBFC-Account Aggregator Collecting and providing specified financial Base layer.
(NBFC-AA) information pertaining to a customer in a
consolidated, organised, and retrievable manner to
the customer or regulated entity as specified by the
customer.
10. NBFC–Peer to Peer Lending Providing an online marketplace or platform to Base layer.
Platform (NBFC-P2P) facilitate lending between lenders and borrowers.
11. Housing Finance Company Financing for purchase/ construction/ reconstruction/ Middle or upper layer, as the case may be.
(HFC) renovation/ repairs of residential dwelling units.
12. Standalone Primary Dealer Underwrites issuances of government-dated Middle layer.
(SPD) securities and participates in primary auctions.
Source: RBI.
of designing, delivering, and servicing of digital of total assets as at end-March 2025. NBFC-
credit products. This was necessitated by the ML accounted for the largest share of 64.6 per
rise of fintech, digital lending and ‘digital-first’ cent due to the presence of government-owned
approach adopted by the NBFC sector in enabling NBFCs, while NBFC-BL had a meagre share of
the credit flow to the economy. These directions 5.2 per cent in total assets although it is the
are aimed at strengthening the digital lending largest segment in terms of number of entities
practices while ensuring greater transparency, (Table VI.2).
accountability, and consumer trust in the digital
VI.9 The credit extended by NBFCs8 has
credit ecosystem.
been rising over the years, underscoring their
VI.8 The NBFC sector is dominated by 15 growing importance in financial intermediation.
NBFCs (including four HFCs) which are in It increased to 14.6 per cent of gross domestic
the upper layer with a share of 30.2 per cent product at end-March 2025 from 13.5 per cent a
8 Analysis from this section onwards focuses on NBFCs in the upper and middle layers excluding CICs, HFCs and SPDs. The latter
two are covered in separate sections. Layer-wise identification of NBFCs up to March-2025 is based on their position as on December
31, 2024. For September-2025, the same position is considered, except where there was change in layer of NBFC between January
and September 2025.
119Report on Trend and Progress of Banking in India 2024-25
VI.10 The number of registrations and
Table VI.2: Composition of NBFCs
(At end-March 2025) cancellations of certificates of registration (CoR)
(Share in per cent)
of NBFCs have increased in 2024-25 (Chart VI.3).
Layer Number Assets
The reasons for the surrender or cancellations
1 2 3
NBFC-UL 0.2 30.2 of CoRs, inter alia, include voluntary exits, legal
NBFC-ML 7.0 64.6 dissolution, mergers, change in status as well as
NBFC-BL 92.8 5.2
regulatory non-compliance.
Total 100.0 100.0
Note: NBFCs refer to all NBFCs regulated by the Reserve Bank,
2.1. Ownership Pattern
including CICs, HFCs and SPDs.
Sources: RBI and NHB.
VI.11 Government-owned NBFCs (primarily
year ago (Chart VI.2a). NBFCs’ credit as a share
NBFC-IFCs) hold a substantial asset share
of outstanding credit of scheduled commercial
of 36.5 per cent of the NBFC sector and 51.5
banks (SCBs) increased to 25.3 per cent at end-
per cent of the aggregate assets of NBFC-ML.
March 2025 from 23.6 per cent a year ago (Chart
Non-government public and private limited
VI.2b). Emerging co-lending arrangements
companies had shares of 30.6 per cent and
between banks and NBFCs has the potential
33.0 per cent, respectively, in the total assets
to promote greater credit flow by NBFCs to
of the NBFC sector (Table VI.3). Following
underserved sectors like MSMEs, agriculture
identification as NBFC-UL, NBFCs are required
and retail borrowers. In view of this, the
to get listed within three years, i.e., to become a
Reserve Bank released comprehensive revised
public limited company, if they are not already
Directions9 with the objective of broadening
listed.
the scope of co-lending and providing specific
2.2. Balance Sheet
regulatory clarity on the permissibility of such
arrangements, while addressing some of the VI.12 At end-March 2025, the balance sheet
prudential as well as conduct-related aspects. of NBFCs maintained double-digit expansion,
Chart VI.2: NBFCs’ Credit vis-à-vis SCBs’ Credit and GDP
a. NBFCs' and SCBs’ Credit to GDP Ratios b. NBFCs' Credit to SCBs’ Credit Ratio and
(Per cent) their Growth Rates
16 14.6 100 (Per cent)
30
14
72.5 80 25.3
12 25
10 57.8 60 20 19.4
8
15
6 40
11.5
10
4
20
2 5
0 0 0
Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-21 Mar-22 Mar-23 Mar-24 Mar-25
NBFCs' credit to GDP ratio NBFCs' credit as a ratio to SCBs' credit
Total (SCBs and NBFCs)(RHS) NBFCs' credit growth (y-o-y)
SCBs' credit to GDP ratio (RHS) SCBs' credit growth (y-o-y)
Sources: Report on Trend and Progress of Banking in India, various issues; and Handbook of Statistics on the Indian Economy, various issues.
9 Reserve Bank of India (Non-Banking Financial Companies-Transfer and Distribution of Credit Risk) Directions, 2025.
120NON-BANKING FINANCIAL INSTITUTIONS
the dependency of NBFCs on bank borrowings.
Chart VI.3: Registrations and Cancellations of
Certificates of Registration of NBFCs Effective from April 01, 2025, the risk weights
(Number)
were restored to the levels prior to the increase
180 172
in November 202310. Borrowings via debentures
150 picked up at end-September 2025 as compared
with the level at end-March 2025 (Appendix
120
Table VI.1).
90
VI.13 On the asset side, loans and advances
62
expanded by 19.4 per cent at end-March 202511,
60
with upper-layer NBFCs recording higher growth
30 than NBFC-ML. Unsecured lending by NBFCs
rose largely due to the base effect, while the
-
2020-21 2021-22 2022-23 2023-24 2024-25 growth of secured lending moderated during the
Registrations Cancellations same period (Chart VI.4). This moderation was
Note: Data are provisional.
primarily driven by NBFC-ML, whose secured
Source: Supervisory Returns, RBI.
credit growth dropped to 15.8 per cent at end-
surpassing the growth recorded in the previous
March 2025 from 29.9 per cent a year ago
year. On the liabilities side, NBFCs’ growth
(Appendix Tables VI.2 and VI.3).
in borrowings from banks moderated with
NBFC-ML experiencing a deceleration in VI.14 Three categories of NBFCs, viz. ICCs,
growth compared to NBFC-UL, which recorded IFCs and MFIs together accounted for 98.8 per
a marginal expansion (Table VI.4). NBFCs cent of the outstanding credit of the NBFC sector
compensated this moderation by increasing at end-March 2025. NBFC-ICCs, the largest
their reliance on market borrowings, driven classification in terms of asset size and primarily
by NBFC-ML. The increase in risk weights on involved in retail lending, witnessed a credit
bank lending to NBFCs, which was introduced growth of 21.2 per cent. NBFC-Factors continued
in November 2023, was intended to moderate to experience rapid credit growth. NBFC-IFCs,
Table VI.3: Ownership Pattern of NBFCs
(At end-March 2025)
(Amount in ₹ crore; share in per cent)
Type NBFC-Sector NBFC-UL NBFC-ML
Number Asset Asset Number Asset Asset Number Asset Asset
Size share Size share Size share
1 2 3 4 5 6 7 8 9 10
A. Government Companies 26 22,28,097 36.5 0 0 0 26 22,28,097 51.5
B. Non-government Companies (1+2) 405 38,81,029 63.5 10 17,81,991 100.0 395 20,99,038 48.5
1. Public Limited Companies 56 18,67,476 30.6 7 13,43,366 75.4 49 5,24,110 12.1
2. Private Limited Companies 349 20,13,553 33.0 3 4,38,625 24.6 346 15,74,929 36.4
C. Total (A+B) 431 61,09,126 100.0 10 17,81,991 100.0 421 43,27,135 100.0
Notes: 1. Data are provisional.
2. Figures may not add up due to rounding-off.
Source: Supervisory Returns, RBI.
10 Exposures of scheduled commercial banks (SCBs) to non-banking financial companies (NBFCs) – review of risk weights dated
February 25, 2025.
11 Excluding two HFCs (which converted into NBFC-IFC and ICC) from end-March 2025 position, loans and advances grew by 15.2 per
cent at end-March 2025. In April 2025, one more HFC converted into NBFC-ICC. Excluding impact of three HFCs together, loans and
advances grew by 14.4 per cent at end-September 2025.
121Report on Trend and Progress of Banking in India 2024-25
Table VI.4: Abridged Balance Sheet of NBFCs
(₹ crore)
Items At end-March 2024 At end-March 2025 At end-September 2025
NBFCs NBFC-UL NBFC-ML NBFCs NBFC-UL NBFC-ML NBFCs NBFC-UL NBFC-ML
1 2(3+4) 3 4 5(6+7) 6 7 8(9+10) 9 10
1. Share Capital and Reserves 11,95,847 2,54,221 9,41,625 13,96,260 3,31,545 10,64,715 14,68,161 3,86,518 10,81,643
(21.8) (27.6) (20.3) (16.8) (30.4) (13.1) (11.3) (41.3) (3.5)
2. Public Deposits 1,02,959 83,102 19,858 1,21,178 1,00,653 20,525 1,31,730 1,10,124 21,607
(21.2) (28.2) (-1.6) (17.7) (21.1) (3.4) (17.1) (18.8) (9.1)
3. Debentures 12,32,999 2,71,444 9,61,555 14,76,698 3,46,807 11,29,891 16,20,223 4,20,755 11,99,468
(11.3) (20.4) (9.0) (19.8) (27.8) (17.5) (21.4) (35.3) (17.1)
4. Bank Borrowings 13,38,088 4,13,073 9,25,015 15,56,648 5,32,289 10,24,360 16,59,501 5,79,808 10,79,692
(18.8) (27.0) (15.5) (16.3) (28.9) (10.7) (18.6) (25.9) (14.9)
1,05,439 54,146 51,293 1,35,232 61,305 73,928 1,56,199 71,165 85,034
5. Commercial Papers
(26.1) (36.9) (16.4) (28.3) (13.2) (44.1) (34.4) (32.5) (36.1)
6. Others 11,64,138 2,83,535 8,80,603 14,23,109 4,09,392 10,13,717 15,15,342 4,30,490 10,84,853
(15.9) (30.8) (11.8) (22.2) (44.4) (15.1) (18.1) (36.0) (12.3)
Total Liabilities/ Assets 51,39,470 13,59,521 37,79,949 61,09,126 17,81,991 43,27,135 65,51,157 19,98,860 45,52,297
(17.1) (26.9) (13.9) (18.9) (31.1) (14.5) (17.7) (32.6) (12.2)
1. Loans and Advances 40,52,732 11,85,621 28,67,111 48,38,744 15,16,011 33,22,733 52,05,544 17,16,579 34,88,965
(18.7) (29.1) (14.9) (19.4) (27.9) (15.9) (20.5) (30.6) (16.1)
2. Investments 6,66,796 95,189 5,71,606 7,84,621 1,35,253 6,49,368 8,18,990 1,53,493 6,65,497
(25.0) (26.1) (24.8) (17.7) (42.1) (13.6) (6.4) (57.3) (-0.9)
3. Cash and Bank Balances 1,73,559 43,228 1,30,332 2,30,508 80,973 1,49,535 2,41,021 65,829 1,75,192
(0.8) (-7.9) (4.1) (32.8) (87.3) (14.7) (16.4) (13.0) (17.7)
4. Other Current Assets 89,928 24,747 65,181 1,22,877 36,672 86,205 1,43,967 47,219 96,748
(-12.0) (12.5) (-18.7) (36.6) (48.2) (32.3) (29.1) (76.1) (14.2)
5. Other Assets 1,56,455 10,736 1,45,719 1,32,377 13,083 1,19,294 1,41,635 15,740 1,25,895
(-6.5) (29.1) (-8.4) (-15.4) (21.9) (-18.1) (-10.4) 39.9 (-14.2)
Notes: 1. Data are provisional.
2. Figures in parentheses indicate y-o-y growth in per cent.
3. Data for end-March 2025 onwards includes two HFCs converted to NBFC-ICC and NBFC-IFC. Data for end-September 2025 includes one more
HFC which converted into NBFC-ICC in April 2025.
Source: Supervisory Returns, RBI.
which provide financing to infrastructure, such NBFC-MFIs witnessed a decline in credit growth
as power, recorded double-digit credit growth (Table VI.5). The sector adopted measures
compared with 9.6 per cent in the previous year. such as limiting the number of microfinance
Chart VI.4: Nature of NBFCs’ Loans and Advances
a. Secured b. Unsecured
(₹ lakh crore, left scale; per cent, right scale) (₹ lakh crore, left scale; per cent, right scale)
40 40 12 40
30
30 30 9
19.4 19.5
20
20 20 6
10
10 10 3
0
0 0 0 -10
Mar-23 Mar-24 Mar-25 Mar-23 Mar-24 Mar-25
NBFC-UL NBFC-Sector NBFC-UL NBFC-Sector
NBFC-ML Growth, NBFC-Sector (RHS) NBFC-ML Growth, NBFC-Sector (RHS)
Note: Data are provisional.
Source: Supervisory Returns, RBI.
122NON-BANKING FINANCIAL INSTITUTIONS
Table VI.5: Major Components of Liabilities and Assets of NBFCs by Classification
(₹ crore)
Items At end-March 2024 At end-March 2025 At end-September 2025
Borrowings Loans and Total Borrowings Loans and Total Borrowings Loans and Total
Advances Liabilities/ Advances Liabilities/ Advances Liabilities/
Assets Assets Assets
1 2 3 4 5 6 7 8 9 10
1. NBFC-ICCs 19,63,800 23,71,662 32,65,085 24,55,516 28,74,859 39,55,691 26,43,186 30,94,569 42,10,961
(21.0) (24.5) (20.6) (25.0) (21.2) (21.2) (21.7) (19.6) (16.6)
2. NBFC-Factors 2,560 3,425 3,880 3,643 4,639 5,048 3,821 4,788 5,011
(95.8) (67.3) (45.6) (42.3) (35.4) (30.1) (34.2) (24.7) (17.8)
3. NBFC-IDFs 40,122 44,612 48,310 48,387 52,518 57,674 53,153 57,602 63,039
(25.4) (22.2) (23.8) (20.6) (17.7) (19.4) (19.8) (19.1) (18.8)
4. NBFC-IFCs 13,40,429 14,99,348 16,60,542 15,73,379 17,89,856 19,46,048 16,99,185 19,35,856 21,28,021
(9.0) (9.6) (9.5) (17.4) (19.4) (17.2) (22.6) (24.8) (22.3)
5. NBFC-MFIs 1,19,373 1,33,685 1,61,653 1,00,290 1,16,871 1,44,666 1,00,082 1,12,728 1,44,124
(27.6) (30.5) (30.3) (-16.0) (-12.6) (-10.5) (-10.0) (-12.0) (-7.7)
Total 34,66,283 40,52,732 51,39,470 41,81,214 48,38,744 61,09,126 44,99,426 52,05,544 65,51,157
(16.3) (18.7) (17.1) (20.6) (19.4) (18.9) (21.0) (20.5) (17.7)
Notes: 1. Data are provisional.
2. Figures in parentheses indicate y-o-y growth in per cent.
Source: Supervisory Returns, RBI.
lenders to a client to three and capping the total well as their borrowings had a maturity period
microfinance loans (including unsecured retail beyond 12 months, implying a lower degree of
loan) to a client to ₹ 2 lakh12. The sector also asset-liability mismatch and thereby avoiding
witnessed tighter funding conditions along with liquidity stress (Chart VI.5).
rising competition, and state-specific regulations
2.3. Sectoral Credit of NBFCs
for this segment.
VI.16 An examination of the credit extended
VI.15 At end-March 2025, over two-thirds by NBFCs at end-March 2025 suggests that
of loans and advances extended by NBFCs as industry and retail segments accounted for 81.1
Chart VI.5: Maturity Profiles of Receivables and Payables of NBFCs
a. Loans and Advances b. Borrowings
(Share in per cent) (Share in per cent)
100 100
11.3
12.8
80 21.2 80 19.8
60 60
40 40
67.5 67.5
20 20
0 0
Mar-23 Mar-24 Mar-25 Mar-23 Mar-24 Mar-25
Receivable within 3 months Receivable after 12 months Payable within 3 months Payable within 3 to 12 months
Receivable within 3 to 12 months Payable after 12 months
Note: Data are provisional.
Source: Supervisory Returns, RBI.
12 The SROs for NBFC-MFIs viz. Microfinance Institutions Network (MFIN) and Sa-Dhan brought out guardrails and inter alia capped
loan outstanding per borrower.
123Report on Trend and Progress of Banking in India 2024-25
per cent of total credit followed by services at
Table VI.6: Sectoral Credit Deployment by
15.4 per cent. Credit to services recorded a NBFCs
(₹ crore)
significant increase of 29.8 per cent followed by
Items End- End- End-
industry and retail loans exhibiting double digit
March March September
2024 2025 2025
growth during the same period. Power sector,
1 2 3 4
which accounts for the largest share of credit to
1. Agriculture and Allied 84,712 82,059 87,840
industry recorded some moderation in its share Activities
2. Industry, of which 19,37,033 22,91,605 23,94,110
to 56.1 per cent at end-March 2025 from 58.2
2.1 Power 11,26,554 12,85,589 13,21,790
per cent a year ago. Within services, sub-sectors 3. Services, of which 5,73,198 7,44,181 8,01,470
like trade and loans to transport operators grew 3.1 Transport Operators 1,32,778 1,61,937 1,66,426
3.2 Trade 95,149 1,27,923 1,33,648
at rapid pace. Retail credit continued to grow
4. Retail Loans, of which 13,82,146 16,31,900 18,38,897
at double digits albeit at a slower pace on the 4.1 Vehicle/ Auto Loans 4,77,135 5,71,954 6,11,714
4.2 Advances to Individuals 1,54,315 2,08,482 2,61,728
back of increase in risk weights on select retail
against Gold
loans in November 202313. The growing role of 4.3 Micro Finance Loan/ 1,50,750 1,33,186 1,24,089
SHG Loan
NBFCs is reflected in their credit growth which
5. Others 75,643 88,998 83,227
surpassed that of banks in all segments except Gross Advances (1 to 5) 40,52,732 48,38,744 52,05,544
in case of agriculture and allied activities during Note: Data are provisional.
Source: Supervisory Returns, RBI.
the same period. At end-September 2025,
offering customised products and leveraging
aggregate credit growth continued to expand
digital lending platforms. NBFCs’ lending to
in double digits (Chart VI.6, Table VI.6, and
MSMEs in services-sector accounted for a
Appendix Table VI.5).
larger share as compared to lending to MSME-
VI.17 In lending to the MSME sector, NBFCs industries. The proportion of credit to MSMEs
are increasingly establishing their presence by in the total credit extended by NBFCs has been
Chart VI.6: Distribution of NBFCs’ Credit
a. Share b. Growth
(Per cent) (Per cent)
1.7 1.8
15.4
47.4
2024
2025
33.7
Industry Agriculture and allied activities
Retail loans Others Industry Agriculture and allied activities
Services Retail loans Services
Note: Data are provisional.
Source: Supervisory Returns, RBI.
13 The risk weights on consumer credit exposure of NBFCs (outstanding as well as new) categorised as retail loans, excluding housing
loans, educational loans, vehicle loans, loans against gold jewellery and microfinance/ SHG loans, were increased from 100 to 125
per cent dated November 16, 2023.
124
3.81 1.81
8.92
1.3-
2.8
7.11 0.21 4.01
45
40
35
30
25
20
15
10
5
0
-5 Mar-24 Mar-25 Mar-24 Mar-25
-10 NBFCs' credit Banks' creditNON-BANKING FINANCIAL INSTITUTIONS
Chart VI.7: Credit to MSME Sector
a. Breakup of NBFCs' Credit b. NBFCs' vis-à-vis Banks' Credit
(Per cent) (Per cent)
100 31.3 15 100
86.7
80 80
10
60 9.9 60
40 5 40 30.6
20 68.7 20 13.3 14.1
0 0
0
Mar-23 Mar-24 Mar-25
Share Growth Share Growth
MSME industry MSME credit by NBFCs MSME credit by Banks
MSME services
NBFCs' credit to MSMEs as per cent of total credit (RHS) Mar-24 Mar-25
Notes: 1. In chart ‘b’, share refers to share in total credit extended by NBFCs and banks to MSMEs.
2. Data are provisional.
Source: Supervisory Returns, RBI.
on the rise, reaching nearly 10 per cent by end- financing, gold loans14, and microfinance, as
March 2025, highlighting its growing role in these three segments together accounted for 56
catering to the needs of MSMEs (Chart VI.7a). per cent of their retail loan portfolio. NBFCs are
facing competition from banks in the gold loan
As compared to banks, NBFCs recorded a
segment, leading to a significant drop in their
higher credit growth, and their share in lending
share in aggregate gold loans extended by banks
to the MSME sector increased during 2024-25
and NBFCs at end-March 2025 (Chart VI.8a).
(Chart VI.7b).
NBFCs have managed to increase their market
VI.18 In the retail loan segment, NBFCs share in vehicle financing attaining a growth
maintained a strong position in vehicle more than twice that of banks at end-March
Chart VI.8: Select Retail Loans by NBFCs vis-à-vis Banks
a. Gold b. Vehicles
(Per cent) (Per cent)
80 150 60 30
121.1 52.1
47.9
50 25
60 50.3 49.7
100 40 19.9 20
40 30 15
50
20 35.1 20 8.6 10
10 5
0 0
0 0
Mar-24 Mar-25 Mar-24 Mar-25
Mar-24 Mar-25 Mar-24 Mar-25
NBFCs SCBs NBFCs SCBs
Share Growth (RHS) Share Growth (RHS)
Notes: 1. Data are provisional.
2. Share in chart ‘a’ and ‘b’ refers to share in total credit extended by NBFCs and banks for gold and vehicles, respectively.
3. In chart ‘a’, gold loans by SCBs refer to loan against gold jewellery. Gold loan by NBFCs refer to advances to individuals against gold.
Sources: DBIE and Supervisory Returns, RBI.
14 Loans against pledge of gold ornaments and jewellery.
125Report on Trend and Progress of Banking in India 2024-25
2025 (Chart VI.8b). The Reserve Bank revised 2.4. Resource Mobilisation
directions on lending against gold and silver
VI.20 NBFCs mobilise resources from both
collaterals in June 202515 aimed at designing
banks and markets. There has been a modicum
a more principle-based and harmonised
of diversification of sources of funding by NBFCs
regulatory framework, while also addressing
in recent years, mainly towards borrowings
gaps in potential, prudential and conduct-related
aspects across the regulated entities. from foreign sources along with loan sales and
securitisation.
VI.19 The revised regulatory framework for
microfinance loans16 introduced in 2022, by 2.4.1. Borrowings
eliminating interest rate caps while introducing
VI.21 Bank borrowings and debentures have
standardised rules, laid the foundation for
continued to be the predominant source of
systemic and sustainable growth of the sector.
funding for NBFCs. The combined share of these
The guardrails17 introduced by Microfinance
Institutions Network (MFIN) and Sa-Dhan sources, however, has declined marginally from
further prioritised steady and calibrated growth 74.2 per cent at end-March 2024 to 72.9 per cent
of the sector. The microfinance sector, however, at end-September 2025 (Chart VI.10). NBFCs
experienced stress, with all lenders - excluding
also borrow through inter-corporate borrowings,
other NBFCs (NBFCs excluding NBFC-MFIs) -
commercial papers, financial institutions and
recording contraction in credit as at end-March
subordinated debts (Table VI.7).
2025 (Chart VI.9). Going ahead, regulated
entities need to monitor the build-up of stress in VI.22 Banks, besides extending direct credit,
the segment. invest in debentures and commercial papers
Chart VI.9: Micro-credit Outstanding across Regulated Entities
a. Share b. Growth
(Per cent) (Per cent)
40
1.0
11.0
30
20
16.0 39.0
10 4.1
2024
0
-10
2025
-20 -13.7 -14.7
33.0 -20.2
-30
NBFCs-MFI Banks SFBs Other NBFCs
NBFCs-MFI Banks Others
SFBs Other NBFCs Mar-24 Mar-25
Note: ‘SFBs’ in Chart ‘a’ refers to small finance banks.
Source: Micrometer, Issue 53, Microfinance Institutions Network.
15 Reserve Bank of India (Non-Banking Financial Companies-Credit Facilities) Directions, 2025.
16 Reserve Bank of India (Non-Banking Financial Companies-Credit Facilities) Directions, 2025 and Reserve Bank of India (Non-
Banking Financial Companies-Responsible Business Conduct) Directions, 2025.
17 The SROs for NBFC-MFIs viz. Microfinance Institutions Network (MFIN) and Sa-Dhan brought out guardrails and inter alia capped
loan outstanding per borrower.
126NON-BANKING FINANCIAL INSTITUTIONS
Table VI.7: Sources of Borrowings of NBFCs
(₹ crore)
Items End-March End-March End-September Percentage Variation
2024 2025 2025
2023-24 2024-25
1 2 3 4 5 6
1. Debentures 12,32,999 14,76,698 16,20,223 11.3 19.8
(35.6) (35.3) (36.0)
2. Bank borrowings 13,38,088 15,56,648 16,59,501 18.8 16.3
(38.6) (37.2) (36.9)
3. Borrowings from FIs 1,17,157 1,40,199 1,44,859 30.8 19.7
(3.4) (3.4) (3.2)
4. Inter-corporate borrowings 1,05,415 1,37,537 1,59,401 5.9 30.5
(3.0) (3.3) (3.5)
5. Commercial papers 1,05,439 1,35,232 1,56,199 26.1 28.3
(3.0) (3.2) (3.5)
6. Borrowings from government 18,282 18,442 18,566 -2.7 0.9
(0.5) (0.4) (0.4)
7. Subordinated debts 75,399 93,040 97,529 5.5 23.4
(2.2) (2.2) (2.2)
8. Other borrowings 4,73,503 6,23,418 6,43,147 23.7 31.7
(13.7) (14.9) (14.3)
Total borrowings 34,66,283 41,81,214 44,99,426 16.3 20.6
Notes: 1. Data are provisional.
2. Figures in parentheses indicate share in total borrowings.
Source: Supervisory Returns, RBI.
issued by NBFCs. The share of aggregate VI.23 Both secured and unsecured borrowings
borrowings from banks in total borrowings of by NBFCs rose steeply at end-March 2025
NBFCs continued to be significant although it has (Chart VI.12). Unsecured borrowings rose on
the back of rising issuance of commercial papers
shown some moderation in recent years (Chart
and inter-corporate borrowing.
VI.11a). Bank lending to NBFCs accounted for
8.5 per cent of total bank credit at end-March 2.4.2. Public Deposits
2025 as compared with 8.9 per cent in the VI.24 Public deposits provide an alternative
preceding year (Chart VI.11b). source of funds for deposit-taking NBFCs
Chart VI.10: Major Sources of Borrowings by NBFCs
a. Bank (Direct Lending) b. Debentures
(₹ lakh crore, left scale; per cent, right scale) (₹ lakh crore, left scale; per cent, right scale)
20 39 20 38
15 15 37
38
10 10 36
37.2
37
35.3
5 5 35
0 36 0 34
Mar-23 Sep-23 Mar-24 Sep-24 Mar-25 Mar-23 Sep-23 Mar-24 Sep-24 Mar-25
Bank borrowings Share in total borrowings (RHS) Debentures Share in total borrowings (RHS)
Note: Data are provisional.
Source: Supervisory Returns, RBI.
127Report on Trend and Progress of Banking in India 2024-25
Chart VI.11: Banks’ Exposure to NBFCs
a. Instrument-wise b. Group-wise
(₹ lakh crore, left scale; per cent, right scale) (₹ lakh crore, left scale; per cent, right scale)
18 44
15 43.5
12 43
9 42.5
41.4
6 42
3 41.5
- 41
CPs Direct borrowing of NBFCs from banks
Debentures Overall NBFCs borrowings from banks (RHS)
(NBFC-D) accounting for 12.5 per cent of Insurance and Credit Guarantee Corporation.
total liabilities of NBFC-D at end-March 2025 As per the extant regulatory requirements for
(Appendix Table VI.4). Although the number of acceptance of public deposits, these NBFCs
NBFC-D declined, their deposits registered a should have at least an investment-grade rating
robust double-digit growth in 2024-25 mainly of ‘BBB–’ from any SEBI-registered credit rating
due to competitive interest rates (Chart VI.13a). agency. Furthermore, the quantum of deposits
There is a concentration of deposits in five major should not exceed 1.5 times their net owned
NBFC-D accounting for 96.9 per cent of aggregate funds for period ranging from 12 to 60 months
deposits (Chart VI.13b). Deposits mobilised and interest rates capped at 12.5 per cent per
by NBFC-D are not insured by the Deposit annum.
128
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16 9.0
12 8.8
8 8.6
8.5
4 8.4
- 8.2
Mar-24 Jun-24 Sep-24 Dec-24 Mar-25
Small finance banks Public sector banks
Foreign banks Overall banks' exposure to NBFCs (RHS)
Private sector banks
Notes: 1. Data are provisional.
2. In chart ‘a’, overall NBFCs borrowings from banks refers to sum of direct borrowing of NBFCs from banks, CPs and debentures subscribed by
banks as a share of total borrowings of NBFCs.
3. In chart ‘b’, overall banks' exposure to NBFCs refers to share of direct lending of banks (small finance banks, public sector banks, foreign
banks and private sector banks) to NBFCs in outstanding credit of banks.
Source: Supervisory Returns, RBI.
Chart VI.12: Nature of NBFCs’ Borrowings
a. Secured b. Unsecured
(At end-March, ₹ lakh crore, left scale; per cent, right scale) (At end-March, ₹ lakh crore, left scale; per cent, right scale)
30 25 20 22.1 25
19.6
25
20 20
15
20
15 15
15 10
10 10
10
5
5 5 5
0 0 0 0
2023 2024 2025 2023 2024 2025
NBFC-UL NBFC-Sector NBFC-UL NBFC-Sector
NBFC-ML Growth, NBFC-Sector (RHS) NBFC-ML Growth, NBFC-Sector (RHS)
Note: Data are provisional.
Source: Supervisory Returns, RBI.NON-BANKING FINANCIAL INSTITUTIONS
Chart VI.13: Public Deposits with NBFC-D
a. Public Deposits b. Distribution of Deposits
(At end-March; ₹ lakh crore,left scale; number of reporting companies, right scale) (At end-March 2025)
1.4 30
25.0
1.2 25 Over ₹5,000 crore 96.9
1.0
20 20
0.8 5.0
15 ₹250-5,000 crore 2.6
0.6
10
0.4
70.0
5 Upto ₹250 crore
0.2 0.5
0.0 -
2023 2024 2025 0 50 100
Public deposits Number of reporting companies (RHS) Share in number Share in deposits
Notes: 1. NBFC-D have been grouped into different buckets based on the size of their aggregate public deposits. No NBFC-D had deposits in the bucket of ₹ 250-500 crore
and ₹ 500-1,000 crore.
2. Data are provisional.
Source: Supervisory Returns, RBI.
2.4.3. Loan Sales and Securitisation has also been rising. Banks remained the
dominant counterparty in both these segments
VI.25 Lending institutions generally undertake
as they utilise these arrangements to meet their
loan sales and securitisation as instrument for
commitments under the priority sector lending
liquidity generation, rebalancing their exposures
requirements18 (Chart VI.14).
and for regulatory compliance. During 2024-25,
2.4.4. Foreign Liabilities
while NBFCs mobilised larger volumes of funds
through direct loan sales, their securitisation VI.26 NBFCs take recourse to funds from foreign
activity as a source of resource mobilisation sources also, primarily through borrowings
Chart VI.14: Loan Sales and Securitisation by NBFCs
a. Sales b. Securitisation
(₹ thousand crore) (₹ thousand crore)
35
30
25
20
15
10
5
-
Notes: 1. Data are provisional.
2. Values in chart ‘a’ and ‘b’ refer to loan sales and securitisation during the quarter, respectively.
Source: Supervisory Returns, RBI.
18 Banks can classify their investments in ‘Securitisation Notes’ and ‘Assignment/ outright purchase of pool of assets by banks
representing loans’ under respective priority sector categories, provided the assets are originated by banks and financial institutions
and are eligible for classification as priority sector advances and adhere to RBI’s guidelines.
129
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25
20
15
10
5
-
Banks ARCs NBFCs Others Banks ARCs NBFCs Others
32-raM 32-nuJ 32-peS 32-ceD 42-raM 42-nuJ 42-peS 42-ceD 52-raMReport on Trend and Progress of Banking in India 2024-25
Table VI.8: Foreign Liabilities of NBFCs
(₹ crore)
Items End-March End-March End-September Percentage Variation
2024 2025 2025
2023-24 2024-25
1 2 3 4 5 6
1. Equity shares 48,777 48,811 49,797 19.4 0.1
i) Foreign Institutional Investors 1,911 3,315 3,854 41.5 73.4
ii) Foreign Direct Investment 46,865 45,496 45,943 18.7 -2.9
2. Borrowings 2,56,790 4,69,636 5,32,375 26.5 82.9
3. Bonds/ Debentures 1,24,559 1,28,201 1,30,268 -1.7 2.9
4. Others 19,234 24,229 28,846 34.8 26.0
Total Foreign Liabilities (1 to 4) 4,49,359 6,70,876 7,41,286 16.8 49.3
Total Liabilities 51,39,470 61,09,126 65,51,157 17.1 18.9
Note: Data are provisional.
Source: Supervisory Returns, RBI.
and issuance of debentures (Table VI.8). The Liquidity mismatch19 is a key indicator of the
share of borrowings from foreign sources in liquidity position of NBFCs. Within the 1-30/ 31
total liabilities increased to 8.1 per cent at end- days bucket, NBFCs had more than 100 per cent
September 2025 from 7.7 per cent at end-March positive mismatch as a share of total outflows
2025 as compared with 5.0 per cent at end- at end-March 2025, indicative of sufficient
March 2024, indicating modest diversification. high-quality liquid assets buffers to manage
stress. Further, all time buckets, except that of
2.5. Asset Liability Profile of NBFCs
over six months to one year, over one to three
VI.27 NBFCs maintained a net positive liquidity
years and over five years maturity, recorded an
position at end-March 2025, reflecting an overall
improvement (Chart VI.15).
comfortable liquidity position for the sector.
2.6. Financial Performance
Chart VI.15: Structural Liquidity Statement of NBFCs
VI.28 NBFCs derived 93.2 per cent of income
(At end-March; mismatch as a share of total outflows in per cent)
160 from fund-based sources, viz., interest income
139.0
140
and investment earnings, while the remaining is
120
100 from fee-based sources. There was a moderation
80
60 49.0 in total income growth of NBFCs at end-March
40 38.6
2025 due to deceleration in interest income
20 16.4 12.7 2.3 7.4
0 growth, driven by NBFC-ML (Table VI.9 and
-1.1
-20 -8.5
Appendix Tables VI.6 and VI.7). Expenditure
recorded an increase due to higher interest
expenses, provisioning for NPAs, and write-offs
of bad debts. Deceleration in income along with
an increase in expenditure led to a higher cost-
Mar-24 Mar-25 to-income ratio and contraction in net profits.
Notes: 1. Data are provisional.
Moderation in key performance indicators viz.,
2. Mismatch is defined as inflows minus outflows.
Source: Supervisory Returns, RBI.
return on asset (RoA), return on equity (RoE) and
19 Measured as the difference between cash inflows and cash outflows across various time buckets. A positive mismatch indicates a
comfortable liquidity position, while a negative mismatch signals liquidity risk.
130
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13/03
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latoTNON-BANKING FINANCIAL INSTITUTIONS
Table VI.9: Financial Parameters of the NBFC Sector
(₹ crore)
Items 2023-24 2024-25 H1: 2025-26
NBFCs NBFC-UL NBFC-ML NBFCs NBFC-UL NBFC-ML NBFCs NBFC-UL NBFC-ML
1 2 3 4 5 6 7 8 9 10
A. Income 5,93,747 1,82,115 4,11,632 6,85,545 2,38,342 4,47,203 3,88,433 1,42,597 2,45,836
(26.8) (28.9) (25.9) (15.5) (30.9) (8.6) (15.3) (29.8) (8.3)
B. Expenditure 4,14,444 1,30,395 2,84,049 5,15,351 1,74,008 3,41,343 2,86,968 1,06,522 1,80,446
(23.8) (27.6) (22.1) (24.3) (33.4) (20.2) (20.0) (35.5) (12.4)
C. Net Profit 1,40,959 38,618 1,02,341 1,32,286 48,873 83,412 79,970 27,012 52,958
(30.8) (34.3) (29.5) (-6.2) (26.6) (-18.5) (1.0) (14.9) (-4.9)
D. Total Assets 51,39,470 13,59,521 37,79,949 61,09,126 17,81,991 43,27,135 65,51,157 19,98,860 45,52,297
(17.1) (26.9) (13.9) (18.9) (31.1) (14.5) (17.7) (32.6) (12.2)
E. Financial Ratios (as per cent of Total Assets)
(i) Income 11.6 13.4 10.9 11.2 13.4 10.3 11.9 14.3 10.8
(ii) Expenditure 8.1 9.6 7.5 8.4 9.8 7.9 8.8 10.7 7.9
(iii) Net Profit 2.7 2.8 2.7 2.2 2.7 1.9 2.4 2.7 2.3
F. Cost to Income Ratio 48.8 52.7 47.1 55.2 54.2 55.9 53.2 56.8 50.9
(per cent)
Cost to Income Ratio = (Operating Expenses)/ (Operating Income) *100.
Operating Expenses = Total expenditure-interest expenses; Operating Income = Total income-interest expenses.
Notes: 1. Data are provisional.
2. Figures in parentheses indicate y-o-y growth in per cent.
3. Financial ratios for H1: 2025-26 have been annualised.
Source: Supervisory Returns, RBI.
net interest margin (NIM) is discernible across from 3.5 per cent at end-March 2024. NNPA
the layers. Further, RoA and RoE of NBFC-MFI ratio also followed a downward trajectory,
turned negative during 2024-25 (Chart VI.16). reflecting effective resolution of NPAs and
adequate provisioning. The asset quality of all
2.7. Soundness Indicators
classification of NBFCs barring NBFC-MFIs has
VI.29 The asset quality of the sector showed improved (Chart VI.17a). NBFC-MFIs showed
further improvement in 2024-25. GNPA ratio deterioration in asset quality with GNPA ratio
declined to 2.9 per cent at end-March 2025 increasing to 4.1 per cent at end-March 2025
Chart VI.16: Profitability Ratios of NBFCs
a. By Layer b. By Classification
(Per cent) (Per cent)
18 21
15 18
15
12
10.1 12
9 10.1
9
6 5.0 6 5.0
3 2.3 3 2.3
0 -
Mar-24 Mar-25 Mar-24 Mar-25 Mar-24 Mar-25 Mar-24 Mar-25 Mar-24 Mar-25 Mar-24 Mar-25
(3)
RoA RoE NIM RoA RoE NIM
NBFC-UL NBFC-ML NBFC-Sector ICC IFC MFI NBFC-Sector
Note: Data are provisional.
Source: Supervisory Returns, RBI.
131Report on Trend and Progress of Banking in India 2024-25
Chart VI.17: Asset Quality of NBFCs
a. By classification b. By layer
(At end-March; per cent) (At end-March; per cent)
7 5
6
4
5
3 3.02.9
4
2.9
3 2 1.7
2
1.0 1 0.7
1
0 0
2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025
GNPA NNPA GNPA NNPA
ICC IFC MFI NBFC-Sector NBFC-UL NBFC-ML
c. Classification of NBFCs' Loans and Advances d. Portfolio Analysis of Performing Loans and Advances
(Per cent) (Per cent)
100 0.6
Mar-25 97.1 1.4 1.2 0.3 98 2.9
96
94 3.7
Mar-24
92
90
92.7
Mar-23 88
86
92 94 96 98 100 Mar-23 Mar-24 Mar-25
Standard assets Sub-standard Doubtful assets Loss assets Standard (No overdue) SMA-0 SMA-1 SMA-2
Notes: 1. Loans and advances are classified into standard, sub-standard, doubtful and loss assets. Standard assets (performing loans) are further sub
divided into standard (no overdue), SMA-0, SMA-1, and SMA-2.
2. SMA-0, where principal or interest payments was not overdue for more than 30 days, but the account showed signs of incipient stress.
3. SMA-1, where principal or interest payment was overdue for 31-60 days.
4. SMA-2, where principal or interest payment was overdue for 61-90 days.
5. Data are provisional.
Source: Supervisory Returns, RBI.
from 2.0 per cent at end-March 2024, and NNPA a decrease in the share of sub-standard and
ratio rising to 1.2 per cent from 0.6 per cent doubtful assets (Chart VI.17c). NBFCs need to be
during the same period. This was attributed vigilant about the rising trend in Special Mention
to underlying stress in the sector along with Accounts, i.e., SMA 1 and SMA 2 categories
recovery challenges. At end-September 2025, (Chart VI.17d).
GNPA and NNPA ratios of the NBFC-sector stood
VI.32 Gross advances under large borrowal
at same levels as those at end-March 2025.
accounts (exposure of ₹5 crore and above) saw
VI.30 GNPA ratio in case of NBFC-UL remained a growth of 23.3 per cent at end-March 2025
unchanged, although NNPA ratio recorded some as compared to 16.8 per cent a year ago. Their
deterioration at end-March 2025 primarily due asset quality exhibited significant improvement,
to decline in provisions (Chart VI.17b). NBFC- as their GNPA declined from 5 per cent at end-
ML witnessed an improvement in both GNPA March 2024 to 3.3 per at end-March 2025.
and NNPA ratios.
VI.33 Sector-wise, the asset quality deteriorated
VI.31 The share of standard assets in aggregate in case of agriculture and allied activities,
credit extended by NBFCs increased, along with transport, retail trade, housing loans, consumer
132NON-BANKING FINANCIAL INSTITUTIONS
Chart VI.18: Sectoral GNPA Ratios of NBFCs
(Per cent)
15
12 10.7
9 7.9
6.0
6 5.4 4.0 4.1
3 3.0 2.5 3.3 2.7 2.6 1.1 3.1 2.1 3.0
0
Mar-24 Mar-25
Note: Data are provisional.
Source: Supervisory Returns, RBI.
durables and credit card receivables, while it by provision coverage ratio stood at 66.6 per
improved in case of overall industry, commercial cent at end-March 2025 (Chart VI.19).
real estate, vehicle loans and advances against
VI.35 NBFCs continued to remain well-
gold (Chart VI.18).
capitalised with capital to risk weighted assets
VI.34 As per the regulatory requirement, NBFCs ratio (CRAR) at 25.9 per cent at end-March
need to maintain provisions for standard assets,
2025, well above the regulatory prescription
sub-standard assets, loss assets and doubtful
of 15 per cent. NBFC-MFIs, as a precautionary
assets. Provisions made by NBFCs represented
measure, further raised their CRAR during
2024-25 (Chart VI.20). At end-September 2025
Chart VI.19: Provision Coverage Ratio of NBFCs
(Per cent) CRAR of the NBFC sector stood at 24.9 per cent.
80
2.8 Exposure to Sensitive Sectors
66.6
VI.36 At end-March 2025, 25 per cent of
60
NBFCs’ total assets were exposed to sensitive
sectors20 (Chart VI.21). NBFCs’ exposure to
40 real estate increased over time, reaching 26.8
per cent as a share of the total exposure to
sensitive sectors during the same period. To
20 reduce the cost of financing by NBFCs to high
quality infrastructure projects, it was proposed
to reduce the risk weights applicable on these
0
Mar-23 Mar-24 Mar-25 projects21. Exposures to capital market declined
ICC IFC MFI NBFC-Sector
during 2024-25, following internal limits under
Note: Data are provisional.
Source: Supervisory Returns, RBI.
the SBR.
20 Includes capital market exposure, real estate exposure, investment in securities, and advances against commodities.
21 Governor’s Statement: October 01, 2025.
133
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llarevOReport on Trend and Progress of Banking in India 2024-25
Chart VI.20: CRAR of NBFCs
a. By Layer b. By Classification
(Per cent) (Per cent)
30 29.2 35
25.9 31.0
30
27.4
20.7 25 24.6
20
20
15
10
10
5
0 0
Mar-23 Mar-24 Mar-25 Mar-23 Mar-24 Mar-25
NBFC-UL NBFC-ML ICC IFC
NBFC-Sector Regulatory minimum MFI Regulatory minimum
Note: Data are provisional.
Source: Supervisory Returns, RBI.
3. Housing Finance Companies SBR framework, depending on their specific
characteristics and risk profile. The Reserve
VI.37 HFCs are specialised FIs that primarily
Bank has been harmonising regulations for
focus on providing housing finance and are
HFCs and NBFCs by aligning norms on, inter
supervised by the National Housing Bank (NHB).
alia, deposit acceptance, liquidity, credit ratings,
The Reserve Bank, from August 2019, took
and investment limits.
over the regulation of HFCs from NHB. HFCs
VI.38 In 2024-25, two HFCs (one under
are classified as NBFC and are placed either in
government ownership) with a combined share
the middle layer or the upper layer under the
of 15.2 per cent in the total asset size of the sector
at end-March 2024, converted to NBFC-IFC and
Chart VI.21: NBFCs’ Exposure to Sensitive Sectors
(Share in per cent)
100 4.2 30 Table VI.10: Ownership Pattern of HFCs
(At end-March)
80 (₹ crore)
39.5
Type 2024 2025
60 25.0 Number Asset Size Number Asset Size
1 2 3 4 5
25
A. Government 1 95,990 0 0
40 26.8
Companies
B. Non-Government 92 9,78,455 91 10,58,279
20 Companies (1+2)
29.6 1. Public Ltd. 71 9,66,912 69 10,43,075
Companies
0 20
2. Private Ltd. 21 11,542 22 15,204
Mar-23 Mar-24 Mar-25
Companies
AAC IIS REE CME
Total (A+B) 93 10,74,445 91 10,58,279
Share of SSE in total NBFCs' assets (RHS)
(91) (9,11,481)
CME: Capital market exposure; REE: Real estate exposure; IIS:
Investment in securities; AAC: Advances against commodities; SSE: Notes: 1. Data are provisional.
Sensitive sector exposure. 2. Figures in parentheses for 2024 exclude data for the two HFCs
Note: Data are provisional. converted to NBFCs.
Source: Supervisory Returns, RBI.
Source: NHB.
134NON-BANKING FINANCIAL INSTITUTIONS
VI.39 The share of HFCs in total credit to
Chart VI.22: Credit to Housing Sector by
HFCs, SCBs and NBFCs the housing sector (banks, HFCs and NBFCs
(Share in per cent, left scale; growth in per cent, right scale)
combined) decreased to 18.8 per cent as at
100 1.2 20
14.0 end-March 2025, as the number of HFCs came
10
80
3.8 down due to conversion of two HFCs into NBFCs
0
60 80.0 (Chart VI.22). Housing loans accounted for 73.8
-10
per cent of the credit extended by HFCs at end-
40
-20
March 2025.
20
-30
18.8 3.1 Balance Sheet
0 -40
Mar-23 Mar-24 Mar-25
VI.40 At end-March 2025, the total assets of
NBFCs SCBs HFCs
HFCs' growth (RHS) HFCs' growth (adjusted) [RHS] HFCs increased by 16.1 per cent23, primarily
Notes: 1. Data are provisional.
2. The significant dip in HFCs share at end-March 2024 was driven by a surge in loans and advances, which
due to merger of an HFC with a bank in 2023.
3. For comparison, the adjusted growth for end-March 2024 accounted for 90.7 per cent of total assets (Table
excludes the merged entity from end-March 2023. Similarly, the
adjusted growth for end-March 2025 excludes the two VI.11). Rising urbanisation and demand for
converted entities from end-March 2024.
Source: NHB. home ownership has sustained the growth in
NBFC-ICC.22 This resulted in a reduction in the housing loans. On the liabilities side, growth was
aggregate assets of the HFCs as at end-March largely facilitated by debentures, share capital
2025 (Table VI.10). and reserves.
Table VI.11: Consolidated Balance Sheet of HFCs
(At end-March)
(₹ crore)
2024 2025
Items
HFCs HFC-ML HFC-UL HFCs HFC-ML HFC-UL
1 2(3+4) 3 4 5(6+7) 6 7
1. Share Capital and Reserves 1,96,147 91,261 1,04,886 1,95,650 92,642 1,03,007
(19.6) (24.1) (16.0) (21.1) (23.9) (18.6)
2. Public Deposits 24,764 5,076 19,689 25,685 5,358 20,327
(3.3) (3.5) (3.2) (3.8) (5.8) (3.2)
3. Debentures 2,56,053 59,642 1,96,411 2,96,548 81,411 2,15,136
(10.3) (38.9) (3.8) (28.8) (72.2) (17.6)
4. Bank Borrowings 3,63,598 1,86,614 1,76,984 3,37,445 1,80,747 1,56,698
(17.8) (28.8) (8.0) (8.0) (17.9) (-1.5)
5. Commercial Papers 30,975 10,241 20,734 37,373 13,232 24,141
(58.2) (143.6) (34.9) (20.7) (29.2) (16.4)
6. Others 2,02,908 1,22,007 80,901 1,65,578 88,952 76,626
(1.5) (3.7) (-1.7) (9.2) (0.8) (21.0)
Total Liabilities/ Assets 10,74,445 4,74,841 5,99,604 10,58,279 4,62,343 5,95,935
(13.3) (22.3) (7.0) (16.1) (22.0) (11.9)
1. Loans and Advances 9,61,452 4,36,062 5,25,390 9,59,857 4,17,925 5,41,931
(14.8) (24.0) (8.2) (16.6) (21.8) (12.9)
2. Investments 42,797 10,044 32,753 34,547 12,972 21,575
(-3.7) (-14.2) (0.1) (8.1) (32.2) (-2.6)
3. Cash and Bank Balances 27,486 16,480 11,006 28,832 19,035 9,797
(3.8) (9.2) (-3.3) (24.2) (17.7) (39.0)
4. Other Assets 42,710 12,255 30,455 35,043 12,410 22,632
(6.5) (28.6) (-0.4) (6.4) (28.2) (-2.7)
Notes: 1. Data are provisional.
2. Figures in parentheses indicate y-o-y growth in per cent.
3. The growth rates for end-March 2025 are calculated by excluding the two HFCs (which converted into NBFCs) from end-March 2024.
4. The growth rates for end-March 2024 are calculated by excluding the merged HFC from end-March 2023.
Source: NHB.
22 In 2025-26 (April 2025) one more HFC converted into NBFC-ICC.
23 The growth rates for end-March 2025 are calculated by excluding the two HFCs (which converted into NBFCs) from end-March 2024.
135Report on Trend and Progress of Banking in India 2024-25
the share of debentures increased. HFCs’ foreign
Chart VI.23: Resources Mobilised by HFCs
(At end-March; share in per cent) borrowings increased at end-March 2025 in line
100 2.6 with the trend observed in the case of NBFCs.
9.7
80 9.3 VI.42 Of the 91 HFCs, seven are permitted to
3.1
accept public deposits. At end-March 2025, 99
60 per cent of deposits was concentrated in the
40.0
interest rate range of 6 to 9 per cent. Public
40
deposits with a maturity of 2-4 years have
relatively higher share followed by 4-5 years at
20
35.3
end-March 2025 (Chart VI.24). Going forward,
deposits with maturity of 5 years and above
0
2023 2024 2025
are likely to decline due to extant regulatory
Debentures Banks Public deposits
Others NHB Foreign borrowing restrictions, wherein all public deposits shall be
Note: Data are provisional.
Source: NHB. repayable after a period of one year but not later
than five years24.
3.2. Resource Profile of HFCs 3.3. Financial Performance
VI.41 Borrowings from banks and debentures VI.43 All key financial indicators for HFCs
remained the major sources of funds for HFCs have shown a robust growth in 2024-25.
(75.3 per cent of total resources mobilised at With income growing faster than expenses,
end-March 2025) [Chart VI.23]. The share of RoA improved during the same period
bank borrowings decreased moderately while (Table VI.12).
Chart VI.24: Distribution of HFCs’ Public Deposits
(At end-March)
a. Interest rate-wise b. Maturity-wise
(Share in per cent) (Share in per cent)
100 100
12.6
80 80
39.4
60 60
99.0
40
40
20 43.1
20
0
0.8 0 5.0
2023 2024 2025 2023 2024 2025
Below 6 per cent 6-9 per cent 1-2 years 2-4 years
9 or more per cent 4-5 years 5 years & above
Note: Data are provisional.
Source: NHB.
24 RBI notification on ‘Review of regulatory framework for HFCs and harmonisation of regulations applicable to HFCs and NBFCs’
dated August 12, 2024.
136NON-BANKING FINANCIAL INSTITUTIONS
Table VI.12: Financial Parameters of HFCs Chart VI.26: Capital Adequacy of HFCs
(₹ crore) (At end-March, per cent)
30
28.0
Particulars 2023-24 2024-25
1 2 3 25
A. Total Income 1,07,639 1,07,359
(13.3) (16.7)
20
1. Fund Income 1,02,451 1,00,588
(18.4) (15.0)
2. Fee Income 2,366 3,209 15
(48.1) (41.1)
B. Total Expenditure 85,292 82,087
(14.3) (11.5) 10
1. Financial Expenditure 61,796 60,796
(19.4) (17.6)
5
2. Operating Expenditure 14,733 16,603
(24.7) (19.8)
C. Tax Provision 826 882 0
(-34.2) (180.8) 2023 2024 2025
D. Net profit (PAT) 18,139 19,637 CRAR Regulatory requirement
(45.7) (29.4)
Note: Data are provisional.
E. Total Assets 10,74,445 10,58,279 Source: NHB.
(13.3) (16.1)
F. Financial Ratios as per cent of Total Assets
(i) Income 10.0 10.1
3.4. Soundness Indicators
(ii) Expenditure 7.9 7.8
(iii) Return on Assets (RoA) 1.7 1.9
VI.44 The asset quality of HFCs recorded an
G. Cost to Income Ratio (per cent) 79.2 76.5
Cost to Income Ratio = (Total Expenditure / Total Income)*100; improvement in terms of both GNPA and NNPA
Return on Assets (RoA) = PAT/ Total Assets.
Notes: 1. Data are provisional. ratios at end-March 2025 (Chart VI.25). The
2. Figures in parentheses indicate y-o-y growth in per cent.
3. The growth rates for 2023-24 are calculated by excluding the aggregate CRAR of the sector stood at 28 per
merged HFC from 2022-23.
4. The growth rates for 2024-25 are calculated by excluding the cent, well above the regulatory requirement of
two HFCs (which converted into NBFCs) from 2023-24.
Source: NHB. 15 per cent (Chart VI.26).
Chart VI.25: Asset Quality of HFCs, by Layer
(At end-March)
a. GNPA Ratio b. NNPA Ratio
(Per cent) (Per cent)
3 1.5
1.0
2 1.8 1.0
1 0.5
0 0.0
2023 2024 2025 2023 2024 2025
HFC-ML HFC-UL HFC-Sector HFC-ML HFC-UL HFC-Sector
Note: Data are provisional.
Source: NHB.
137Report on Trend and Progress of Banking in India 2024-25
4. All India Financial Institutions
Table VI.13: Financial Assistance Sanctioned
and Disbursed by AIFIs
VI.45 All India financial institutions (AIFIs),
(₹ crore)
viz., NABARD, SIDBI, NHB, EXIM Bank, and Institutions Sanctions Disbursements
NaBFID are specialised institutions regulated 2023-24 2024-25 2023-24 2024-25
1 2 3 4 5
and supervised by the Reserve Bank to facilitate
EXIM Bank 1,06,312 1,39,871 89,073 1,28,272
financing for key sectors and activities. NABARD NABARD 4,42,649 4,52,819 4,36,584 4,49,044
is the largest AIFI, accounting for half of the NHB 38,738 44,327 32,103 33,369
SIDBI 3,02,590 2,45,989 2,94,942 2,35,258
aggregate assets of AIFIs, supporting agriculture
NaBFID 83,280 1,01,265 26,243 38,535
and rural development. SIDBI focuses on the Total 9,73,568 9,84,270 8,78,944 8,84,479
MSME sector; NHB supports housing finance;
Note: Data are provisional.
Source: Respective Financial Institutions.
EXIM Bank provides financial assistance to
exporters and importers to promote international 4.2. Balance Sheet
trade; and NaBFID is dedicated to supporting VI.47 The consolidated balance sheet of AIFIs
infrastructure projects (Chart VI.27). grew by 10.1 per cent at end-March 2025
4.1. AIFIs’ Operations25 compared to 20.1 per cent in the previous year.
Loans and advances, which constitute 85.2
VI.46 Financial assistance sanctioned and
per cent of AIFIs’ assets, grew at a robust pace
disbursed by AIFIs grew marginally in 2024-
albeit lower than a year ago, as lending by all
25. All AIFIs, except SIDBI, recorded moderate
AIFIs, except the EXIM Bank, decelerated. AIFIs’
increase in both sanctioned and disbursed
investments recorded a robust growth of 26.7 per
amounts (Table VI.13 and Appendix Table VI.8).
cent at end-March 2025, despite a contraction
in investments by EXIM Bank and NHB. On the
Chart VI.27: Distribution of AIFIs, by Asset Size
(At end-March 2025; share in per cent) liabilities side, while bonds and debentures and
borrowings continued to record double digit
4.2
6.0
growth, deposits contracted by 6.8 per cent as
deposits mobilised by all the AIFIs declined
11.1
(NaBFID does not accept deposits) during 2024-
49.9 25 (Table VI.14).
VI.48 Growth in aggregate resource mobilisation
by AIFIs decelerated to 10.4 per cent in 2024-
28.8
25 from 27.8 per cent in 2023-24. The share
of short-term resources increased significantly
to 69.6 per cent in 2024-25 from 51.7 per cent
NABARD SIDBI EXIM Bank
NHB NaBFID in the preceding year, while the share of long-
Source: Respective Financial Institutions.
term resources declined to 28.4 per cent in
25 The financial year for EXIM Bank, SIDBI, NABARD and NaBFID is from April to March, while for NHB it is from July to June.
138NON-BANKING FINANCIAL INSTITUTIONS
VI.49 AIFIs mobilise resources from the
Table VI.14: AIFIs’ Balance Sheet
(At end-March) money market based on a specified umbrella
(₹ crore) limit, which is linked to their net owned funds.
Items 2023 2024 2025 At end-March 2025, resources raised by AIFIs
1 2 3 4
through short-term loans from banks accounted
1. Capital 55,008 55,008 55,008
(0.0) (0.0) (0.0) for 51.4 per cent of the total resources raised
2. Reserves 99,638 1,15,569 1,35,267
from the money market. AIFIs’ utilisation of
(15.0) (16.0) (17.0)
3. Bonds & Debentures 3,62,319 4,30,846 5,21,258 umbrella limit rose to 69.3 per cent at end-March
(6.4) (18.9) (21.0)
2025 from 65.6 per cent a year ago (Table VI.16).
4. Deposits 4,94,762 5,58,894 5,20,630
(13.5) (13.0) (-6.8)
4.3. Sources and Uses of Funds
5. Borrowings 4,11,114 5,50,613 6,51,808
(58.5) (33.9) (18.4)
VI.50 Funds raised and deployed by AIFIs
6. Other Liabilities 70,229 81,686 89,112
(2.4) (16.3) (9.1) increased by 42.7 per cent during 2024-25 as
Total Liabilities/ Assets 14,93,069 17,92,616 19,73,083 compared with 52.5 per cent a year ago. There
(19.8) (20.1) (10.1)
was a notable shift towards internal sources of
1. Cash & Bank Balances 46,041 87,710 90,500
(6.2) (90.5) (3.2) funding, primarily driven by NABARD. In 2024-
2. Investments 1,00,426 1,32,375 1,67,760
25, 83.1 per cent of the AIFIs funds were used to
(-13.7) (31.8) (26.7)
3. Loans & Advances 13,17,700 15,39,223 16,80,879 repay past borrowings (Table VI.17).
(23.3) (16.8) (9.2)
4. Bills Discounted/ 5,290 6,401 5,200 4.4. Maturity Profile and Cost of Borrowings
Rediscounted (73.0) (21.0) (-18.8)
5. Fixed Assets 1,260 1,282 1,260 VI.51 During 2024-25, while the weighted
(-0.6) (1.8) (-1.7)
average cost of rupee resources rose for NABARD,
6. Other Assets 22,353 25,624 27,484
(69.2) (14.6) (7.3) NHB and SIDBI, it decreased marginally in
Notes: 1. Data are Provisional. case of NaBFID (Chart VI.28a). The weighted
2. Figures in parentheses indicate y-o-y growth in per cent.
Source: Respective Financial Institutions. average maturity of funds mobilised by all AIFIs
2024-25 from 45.1 per cent in the previous year
Table VI.16: Resources Raised by AIFIs from
(Table VI.15). the Money Market
(At end-March)
Table VI.15: Resources Mobilised by AIFIs in (₹ crore)
2024-25 Instrument 2024 2025 Percentage
(₹ crore) Variation
Institution Total Resources Raised Total 1 2 3 4
Long- Short- Foreign Total Outstanding A. Total 3,60,150 4,15,161 15.3
Term Term Currency i) Term Deposits 12,632 14,491 14.7
1 2 3 4 5 6
ii) Term Money 2,508 10 -99.6
EXIM Bank* 12,850 84,531 19,432 1,16,813 1,79,181
iii) Inter-corporate Deposits 0 0 -
NABARD 1,17,392 3,96,613 0 5,14,005 8,07,766
iv) Certificate of Deposits 63,595 88,780 39.6
NHB 30,371 3,013 0 33,384 97,951
v) Commercial Papers 1,00,446 98,425 -2.0
SIDBI 88,389 1,95,468 614 2,84,471 5,12,939
vi) Short-term loans from banks 1,80,969 2,13,455 18.0
NaBFID 28,201 710 0 28,911 48,302
Memo:
Total 2,77,203 6,80,335 20,046 9,77,584 16,46,139
B. Umbrella Limit 2,73,258 2,91,096 6.5
*Long-term rupee resources comprise borrowings by way of bonds/
debentures and term loans; while short-term resources comprise CPs, C. Utilisation of Umbrella limit 65.6 69.3 -
term deposits, CDs and borrowings from TREPS/ CROMS. Foreign [A (excluding vi) as percentage of B]
currency resources largely comprise borrowings by way of bonds and Note: The umbrella limit is applicable for five instruments–
bilateral loans in the international market and onshore funds by way of term deposits; term money borrowings; certificates of deposits
long term buy/ sell swaps. (CDs); commercial papers; and inter-corporate deposits.
Source: Respective Financial Institutions. Source: Respective Financial Institutions.
139Report on Trend and Progress of Banking in India 2024-25
Chart VI.29: Long-term Prime Lending Rate
Structure of Select AIFIs
(At end-March; per cent)
12 11.5
10
8.6 8.1 8.1
8
6
4
2
0
Note: Data are provisional.
Source: Respective Financial Institutions.
NABARD and NHB recorded a decline in 2024-
25. Along with the rise in interest income, the
declined marginally, except for NHB and NaBFID
interest expenses also increased for all AIFIs. At
(Chart VI.28b). Long-term prime lending rates
(PLRs) increased marginally for NaBFID, while it the aggregate level, operating expenses of AIFIs
declined in case of NHB (Chart VI.29). declined in 2024-25 mainly due to the reduction
4.5. Financial Performance in SIDBI and NABARD. The operating profit and
VI.52 Interest income across AIFIs continued to net profit continued to record robust growth
rise, while non-interest income of EXIM Bank, during the year (Table VI.18).
Chart VI.28: Weighted Average Cost and Maturity of Rupee Resources Raised by AIFIs
a. Weighted Average Cost b. Weighted Average Maturity
(Per cent) (Years)
8 12
10
7
8
6 6
4
5
2
4 0
2024 2025 2024 2025
EXIM Bank NABARD NHB EXIM Bank NABARD NHB
SIDBI NaBFID SIDBI NaBFID
Note: Data are provisional.
Source: Respective Financial Institutions.
140
MIXE knaB BHN IBDIS DIFBaN
Table VI.17: AIFIs’ Sources and Deployment of
Funds
(₹ crore)
Percentage
Items 2023-24 2024-25
Variation
1 2 3 4
A. Sources of Funds (i+ii+iii) 88,34,046 1,26,03,881 42.7
i. Internal 39,05,316 70,73,042 81.1
ii. External 48,09,099 53,67,547 11.6
iii. Others@ 1,19,632 1,63,291 36.5
B. Deployment of Funds
(i+ii+iii) 88,34,046 1,26,03,881 42.7
i. Fresh Deployment 15,66,118 15,05,343 -3.9
ii. Repayment of Past
Borrowings 63,65,147 1,04,79,021 64.6
iii. Other Deployment 9,02,780 6,19,515 -31.4
of which: Interest Payments 73,783 73,974 0.3
@: Includes cash and balances with banks and the Reserve Bank.
Sources of funds inter alia includes, short term rupee borrowings 2023 2024 2025
(including TREPS), sale/redemption of investments in MF / T-Bill / G-Sec,
funds raised from money market. Deployment of Funds inter alia
includes, repayment of short-term rupee borrowings (including TREPS),
repayment of loans and advances, net deployments in money market.
Notes: 1. Data are provisional.
2. The figures represent sources and deployment during the year.
Source: Respective Financial Institutions.NON-BANKING FINANCIAL INSTITUTIONS
Table VI.18: Financial Performance of AIFIs
(₹ crore)
Items 2022-23 2023-24 2024-25 Percentage Variation
2023-24 2024-25
1 2 3 4 5 6
A) Income 75,411 1,05,392 1,28,759 39.8 22.2
a) Interest Income 73,982 1,03,922 1,27,147 40.5 22.3
b) Non-Interest Income 1,429 1,470 1,611 2.9 9.6
B) Expenditure 56,679 81,913 1,00,884 44.5 23.2
a) Interest Expenditure 53,353 75,912 95,488 42.3 25.8
b) Operating Expenses 3,326 6,001 5,396 80.5 -10.1
of which Wage Bill 1,991 3,914 3,499 96.6 -10.6
C) Provisions
for Taxation 3,230 4,631 5,808 43.4 25.4
for Contingencies 2,935 2,936 3,357 0.0 14.3
D) Profit
Operating Profit (PBT) 17,348 21,058 25,298 21.4 20.1
Net Profit (PAT) 12,568 15,913 19,773 26.6 24.3
Note: Data are provisional.
Source: Respective Financial Institutions.
VI.53 During 2024-25, the ratio of interest More than 99 per cent of the AIFIs’ loans and
income to average working funds improved for advances are classified as standard, except for
all AIFIs, except for NaBFID. NaBFID’s net profit EXIM Bank which has doubtful assets of 1.5
per employee decreased during 2024-25 due per cent (Chart VI.31b). All AIFIs, barring EXIM
to the high initial capital costs for greenfield Bank, reported NNPA ratio close to nil at end-
projects (Table VI.19). Profitability of all AIFIs, March 2025.
except NaBFID, improved in 2024-25 as reflected
5. Primary Dealers
by their RoAs (Chart VI.30).
VI.55 As at end-March 2025, there were
4.6. Soundness Indicators
21 Primary Dealers (PDs), 14 functioning
VI.54 All AIFIs maintained CRAR well above
Chart VI.30: Return on Average Assets of AIFIs
the regulatory minimum of nine per cent at
(At end-March; per cent)
end-March 2025, ensuring that their capital 5
positions are strong and healthy to absorb
4
potential financial shocks (Chart VI.31a).
3.5
Table VI.19: AIFIs’ Select Financial Parameters 3
Institution As per cent of Average Working Funds Net Profit per
Employee 2
Interest Non-Interest Operating (₹ crore) 1.6 1.7
Income Income Profit 1.2
2024 2025 2024 2025 2024 2025 2024 2025 1 0.9
1 2 3 4 5 6 7 8 9
EXIM Bank 9.0 9.4 0.3 0.3 2.3 1.9 7.1 9.1 0
NABARD 6.1 6.6 0.01 0.01 1.1 1.2 1.9 2.4
NHB 6.2 6.8 0.1 0.04 2.3 2.4 7.8 7.7
SIDBI 6.7 7.0 0.1 0.1 1.5 1.6 3.7 4.4
NaBFID 8.2 7.1 0.7 0.3 4.9 3.3 20.3 12.0
Note: Data are provisional. Note: Data are provisional.
Source: Respective Financial Institutions. Source: Respective Financial Institutions.
141
MIXE knaB DRABAN BHN IBDIS DIFBaN
2023 2024 2025Report on Trend and Progress of Banking in India 2024-25
Chart VI.31: Soundness Indicators of AIFIs
a. CRAR b. Classification of AIFIs’ Loans & Advances and NNPA Ratio
(At end-March; per cent) (At end-March 2025; per cent)
100 0.15
99
0.10
98
97
0.05
96
95 0.00
EXIM Bank NABARD
NHB SIDBI
Notes: 1. Data are provisional.
2. In ‘chart a’, regulatory minimum is nine per cent.
Source: Respective Financial Institutions.
departmentally as bank PDs and seven as of underwriting commission increased to 0.6
Standalone PDs (SPDs) [registered as NBFCs paise/₹100 in H1:2025-26, reflecting increased
under section 45-IA of the RBI Act, 1934].
market volatility (Chart VI.32).
5.1 Operations and Performance of PDs
VI.58 The turnover target27 to be achieved
VI.56 PDs are mandated to underwrite
by PDs in the secondary market is fixed as a
issuances of central government dated securities
specific percentage of the average of the previous
and participate in primary auctions. They are
three years’ overall outright market turnover
also mandated to achieve a minimum success
ratio26 of 40 per cent in primary auctions of
Table VI.20: Performance of PDs in the Primary
treasury-bills and cash management bills Market
(₹ crore)
(CMBs), assessed on a half-yearly basis. In 2024-
Items 2023-24 2024-25 H1:2025-26
25, all PDs achieved their minimum success
1 2 3 4
ratio and subscribed to 74.8 per cent of the total Treasury Bills and CMBs
(a) Bidding commitment 16,40,785 12,54,920 5,90,820
quantum of treasury-bills issued during the year.
(b) Bids submitted 35,46,730 28,91,668 16,34,102
PDs’ share in allotment in the primary issuance (c) Bids accepted 9,96,891 8,19,806 3,68,577
of central government dated securities also (d) Success ratio (c)/ (a) 60.8 65.3 62.4
(per cent)
increased during the same period (Table VI.20). (e) Share of PDs in total 69.6 74.8 71.4
allotment (per cent)
VI.57 The underwriting commission (excluding Central Government Dated Securities
(f) Notified Amount 15,43,000 14,11,000 8,00,000
GST) paid to PDs during 2024-25 was ₹14.5 crore
(g) Bids submitted 29,79,456 30,33,221 16,94,328
as compared to ₹41.1 crore in the previous year. (h) Bids accepted 9,79,036 9,08,789 4,47,073
(i) Share of PDs in total 63.5 64.9 56.2
The average rate of underwriting commission
allotment (per cent)
decreased to 0.1 paise/ ₹100 in 2024-25 from Note: Share in total allotment is calculated with respect to total issued
amount.
0.3 paise/ ₹100 a year ago. The average rate
Source: RBI.
26 Bids accepted as a proportion to minimum bidding commitment.
27 Minimum annual secondary market turnover.
142
MIXE knaB DRABAN BHN IBDIS DIFBaN
75
60
45
30
15
0
2023 2024 2025
Standard Sub-standard
Doubtful Loss
Regulatory minimum NaBFID NNPA ratio (RHS)NON-BANKING FINANCIAL INSTITUTIONS
5.3. Sources and Application of SPDs’ Funds
Chart VI.32: Average Rate of Underwriting
Commission of PDs VI.60 The balance sheet size of SPDs expanded
(Paise/ ₹ 100)
0.8 at a slower pace in 2024-25, after recording a
robust growth in the previous year. This was
0.6 mainly due to deceleration in the growth of current
0.6 assets (primarily, G-secs and other marketable
securities), which is the largest item on the
assets side. Fixed assets of SPDs are negligible
0.4
given the nature of business which is not branch
or infrastructure oriented. On the liability
side, the growth of secured loans (outstanding
0.2
0.1 secured borrowing) slowed down, whereas,
unsecured loans (outstanding unsecured
borrowing) gained momentum, leading to a rise
0.0
2022-23 2023-24 2024-25 H1:2025-26
in the proportion of unsecured loans within the
Source: RBI.
overall loan (outstanding borrowing) portfolio
in central government dated securities. During (Table VI.22).
2024-25, the target for each PD was raised to
5.4. Financial Performance of SPDs
two per cent as compared to 1.5 per cent in the
VI.61 SPDs’ income and expenditure expanded
previous year. Majority of the PDs individually
in double-digits in 2024-25 albeit, at a lower
achieved the minimum stipulated turnover
ratio, reflecting their active participation in the Table VI.22: Sources and Applications of
SPDs’ Funds
secondary market. The turnover target for 2025-
(₹ crore)
26 has been fixed at 2.5 per cent.
Items End- End- End- Percentage
March March September Variation
5.2. Performance of Standalone PDs 2024 2025 2025
2023- 2024-
24 25
VI.59 SPDs’ secondary market turnover in
1 2 3 4 5 6
central government dated securities increased 1. Capital 2,368 2,512 2,512 0.0 6.1
2. Reserves and surplus 11,243 13,354 14,199 15.6 18.8
during 2024-25, however, their share as per cent
3. Loans (a+b)* 1,45,057 1,58,563 1,54,007 28.3 9.3
of total market turnover declined marginally
(a) Secured 1,25,026 1,31,973 1,25,915 29.7 5.6
(Table VI.21). (b) Unsecured 20,031 26,590 28,092 20.4 32.7
Liabilities/ Assets 1,58,6671,74,4291,70,717 26.8 9.9
Table VI.21: Performance of SPDs in the Secondary 1. Fixed assets 104 96 90 14.1 -8.1
Market for Central Government Dated Securities 2. HTM investments (a+b) 5,151 5,511 5,014 -17.9 7.0
(₹ crore) (a) Government 4,904 5,258 4,733 -19.4 7.2
securities
Items 2023-24 2024-25 H1:2025-26
(b) Others 248 254 281 29.7 2.6
1 2 3 4
3. Current assets 1,54,122 1,73,220 1,68,542 30.2 12.4
Turnover of SPDs 43,93,097 51,51,124 29,38,197
4. Loans and advances 4,526 4,298 10,166 -6.5 -5.0
Market turnover 2,18,03,213 2,70,23,416 1,64,67,920 5. Deferred tax -141 -116 14 - -
Share of SPDs (per cent) 20.1 19.1 17.8 6. Others -18 -22 -3 - -
Note: 1. Turnover of SPDs has been arrived at by including their buy 7. Current liabilities 5,077 8,558 13,107 16.0 68.6
and sell volumes in the outright segment.
* Outstanding borrowing of SPDs; – denotes not applicable.
2. Market turnover is twice of the total volume in the outright
Notes: 1. Data are provisional.
segment. 2. Assets = [∑ (1 to 6) – 7].
Source: CCIL. Source: RBI.
143Report on Trend and Progress of Banking in India 2024-25
Table VI.23: Financial Performance of SPDs Chart VI.33: Capital and Risk-Weighted Asset
(₹ crore) Positions of SPDs
(₹ thousand crore, left scale; per cent, right scale)
Items 2023-24 2024-25 H1: Percentage
40 60
2025-26 Variation
2023-24 2024-25 35
50
1 2 3 4 5 6
30
A. Income 10,270 12,055 5,974 90.8 17.4
41.0 40
(a) I nterest and 9,158 10,635 5,535 57.5 16.1 25
discount
20 30
(b) Trading profits 1,060 1,330 391 - 25.5
(c) Other income 52 90 48 -14.8 74.6 15
20
B. Expenses 8,422 9,602 4,468 66.0 14.0
10
(a) Interest 7,897 9,002 4,139 69.3 14.0
10
(b) Other* 524 601 329 28.0 14.5 5
C. Profit before tax 2,237 2,831 1,507 361.6 26.6
0 0
D. Profit after tax 1,663 2,113 1,117 385.9 27.1 Mar-23 Mar-24 Mar-25
E. Average assets 1,41,9161,66,5481,72,573 Total net capital funds Total risk weighted assets
F. Financial Ratios (per cent) Credit risk Market risk
CRAR (RHS)
(a) Return on 1.2 1.3 1.3
average assets Source: RBI.
(b) Return on net 12.9 14.3 13.7
worth economy. They recorded improvement in asset
(c) Cost to income 22.1 19.7 17.9
quality and remained well capitalised. Rising
ratio
* Expenses including establishment and administrative costs. urbanisation and demand for dwellings have
– denotes not applicable.
Note: Figures may not add up to total due to rounding-off. sustained the growth in credit by HFCs. The
Source: RBI.
consolidated balance sheet of AIFIs recorded
double digit growth. SPDs maintained sound
rate than the previous year. Interest and discount
financial position and carried out their function
income, the principal revenue stream for SPDs,
of underwriting and supplying liquidity in the
remained robust. Profits expanded at a healthy
G-sec market efficiently during the same period.
pace which resulted in improvement in return
on assets and net worth. With income growing VI.63 Going forward, the performance
faster than expenses, cost to income ratio of microfinance loans needs to be closely
declined during the same period (Table VI.23 monitored. Regulatory measure to restore back
and Appendix Table VI.9). The combined CRAR the lower risk weights for bank lending to NBFCs
of SPDs remained above 40 per cent, much along with easing of monetary policy is helping
above the stipulated norm of 15 per cent (Chart NBFCs in expanding their footprint. NBFCs
VI.33 and Appendix Table VI.10). should continue their diversification of funding
sources and balance their growth aspirations
6. Overall Assessment
with sound and fair practices to ensure inclusive
VI.62 At end-March 2025, NBFCs accounted growth and financial stability. They need to
for around a quarter of the credit extended by be vigilant about emerging technological and
SCBs, underscoring the growing importance of cyber challenges, besides promptly addressing
NBFCs in meeting the credit requirements of the customer grievances.
144APPENDIX TABLE
Appendix Table IV.1: Indian Banking Sector at a Glance
(Amount in ₹ crore)
Sr. Items Amount Outstanding Percentage Variation
No (At end-March)
2024 2025P 2024 2025P
1 2 3 4 5 6
1 Balance Sheet Operations#
1.1 Total Liabilities/assets 2,80,80,520 3,12,18,250 15.5 11.2
1.2 Deposits 2,17,41,578 2,41,47,183 14.0 11.1
1.3 Borrowings 25,40,474 27,17,607 29.8 7.0
1.4 Loans and advances 1,71,42,309 1,91,19,608 19.7 11.5
1.5 Investments 72,70,409 79,42,827 13.0 9.2
1.6 Off-balance sheet exposure (as percentage of on-balance sheet liabilities) 138.6 161.9
1.7 Total consolidated international claims 6,32,852 9,98,116 -5.0 57.7
2 Profitability#
2.1 Net profit 3,49,603 4,01,180
2.2 Return on Asset (RoA) (Per cent) * 1.3 1.4
2.3 Return on Equity (RoE) (Per cent) * 13.6 13.5
2.4 Net Interest Margin (NIM) (Per cent) 3.3 3.1
3 Capital Adequacy #
3.1 Capital to risk weighted assets ratio (CRAR) @ 16.9 17.4
3.2 Tier I capital (as percentage of total capital) @ 87.8 89.1
3.3 CRAR (tier I) (Per cent) @ 14.8 15.5
4 Asset Quality #
4.1 Gross NPAs 4,80,818 4,31,634 -15.9 -10.2
4.2 Net NPAs 1,06,745 95,388 -21.1 -10.6
4.3 Gross NPA ratio (Gross NPAs as percentage of gross advances)** 2.7 2.2
4.4 Net NPA ratio (Net NPAs as percentage of net advances) 0.6 0.5
4.5 Provision Coverage Ratio (Per cent) * 76.2 76.3
4.6 Slippage ratio (Per cent) * 1.5 1.4
5 Sectoral Deployment of Bank Credit #^^
5.1 Gross bank credit 1,64,32,164 1,82,43,972 20.2 11.0
5.2 Agriculture 20,71,251 22,87,060 20.0 10.4
5.3 Industry 36,82,393 39,85,660 9.4 8.2
5.4 Services 45,47,237 50,93,565 22.3 12.0
5.5 Personal loans 53,46,691 59,71,696 27.8 11.7
6 Technological Development
6.1 Total number of credit cards (in lakhs) 1,018 1,099 19.3 7.9
6.2 Total number of debit cards (in lakhs) 9,649 9,908 0.4 2.7
6.3 Number of ATMs and CRMs (in lakhs) 2.58 2.56 -0.3 -0.7
7 Customer Services
7.1 Total number of complaints received during the year^ 2,93,924 2,96,321 25.2 0.8
7.2 Total number of complaints handled during the year ## 2,99,022 3,12,204 21.9 4.4
Of 7.2 Total number of complaints addressed/disposed during the year 2,84,355 2,90,567 18.3 2.2
Of 7.2 Percentage of complaints addressed/disposed during the year 95.1 93.1
8 Financial Inclusion
8.1 Credit-deposit ratio (Per cent) # 78.8 79.2
8.2 Number of new bank branches opened during the year 5,379 4,991 0.8 -7.2
# : Data pertain to SCBs excluding RRBs.
P : Provisional.
* : Based on off-site returns.
** : Calculated by taking gross NPAs from annual accounts of respective banks and gross advances from off-site returns (global operations), RBI.
@ : Figures are as per the Basel III framework.
^ : Excludes complaints closed at CRPC and those auto closed at the CMS Portal.
## : Complaints handled also include complaints brought forward from previous year.
^^: Gross bank credit data is based on fortnightly Section-42 return while sectoral non-food credit data are based on sector-wise and industry-
wise bank credit (SIBC) return, which covers select banks accounting for about 95 per cent of total non-food credit extended by all SCBs,
pertaining to the last reporting Friday of the month.
Notes: 1. Table includes the impact of the merger of a non-bank with a bank.
2. Percentage variation could be slightly different as figures have been rounded off to lakh/crore.
145Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.2: International Liabilities of Banks in India – By Type of Instruments
(Amount in ₹ crore)
Liability Type Amount Outstanding Percentage Variation
(At end-March)
2024 (PR) 2025 (PR) 2023-24 2024-25
1 2 3 4 5
1. Loans and Deposits 15,69,186 17,88,853 21.1 14.0
(63.8) (63.9)
a) Foreign Currency Non-resident (Bank) [FCNR (B)] Scheme 1,98,611 2,84,402 46.3 43.2
(8.1) (10.2)
b) Foreign Currency Borrowings* 1,59,151 1,82,247 64.8 14.5
(6.5) (6.5)
c) Non-resident External Rupee (NRE) Accounts 8,12,252 8,69,802 6.2 7.1
(33.0) (31.1)
d) Non-resident Ordinary (NRO) Rupee Accounts 2,28,483 2,69,624 38.7 18.0
(9.3) (9.6)
2. Own Issues of Securities/ Bonds 3,044 740 0.2 -75.7
(0.1) (0.0)
3. Other liabilities 8,24,875 9,51,289 20.0 15.3
(33.6) (34.0)
Of which:
a) ADRs/GDRs 1,50,363 1,78,991 26.7 19.0
(6.1) (6.4)
b) Equities of Banks 4,72,007 5,28,832 22.0 12.0
Held by Non-residents (19.2) (18.9)
c) Capital / Remittable Profits of Foreign Banks in India and 2,02,504 2,43,467 11.4 20.2
Other Unclassified International Liabilities
(8.2) (8.7)
4. Negative MTM Derivatives 60,718 58,306 -13.1 -4.0
(2.5) (2.1)
Total International Liabilities 24,57,823 27,99,188 19.5 13.9
(100.0) (100.0)
PR : Partially Revised.
* : Inter-bank borrowings in India and from abroad and external commercial borrowings of banks.
Notes: 1. Percentage variation could be slightly different as absolute numbers have been rounded off to ₹ crore.
2. Based on the latest BIS guidelines, MTM derivatives have been introduced in this statement from September 2022 quarter.
3. Figures in parentheses are percentages to total.
Source: International Banking Statistics, RBI.
146APPENDIX TABLE
Appendix Table IV.3: International Assets of Banks in India - By Type of Instruments
(Amount in ₹ crore)
Asset Type Amount Outstanding Percentage Variation
(At end-March)
2024 (PR) 2025 (PR) 2023-24 2024-25
1 2 3 4 5
1. Loans and Deposits 4,39,804 7,80,804 -20.4 77.5
(86.3) (88.9)
Of which:
(a) Loans to Non-residents 97,450 1,86,907 -26.8 91.8
(19.1) (21.3)
(b) Foreign Currency Loan to Residents 1,21,229 1,74,440 11.9 43.9
(23.8) (19.9)
(c) Outstanding Export Bills 29,228 39,590 -14.6 35.5
(5.7) (4.5)
(d) Foreign Currency in hand, Travellers Cheques, etc. 858 790 15.5 -7.9
(0.2) (0.1)
(e) NOSTRO Balances and Placements Abroad 1,91,039 3,79,078 -30.8 98.4
(37.5) (43.1)
2. Holdings of Debt Securities 11,816 42,826 -73.5 262.4
(2.3) (4.9)
3. Other International Assets 13,865 16,926 -34.5 22.1
(2.7) (1.9)
4. Positive MTM Derivative 43,890 38,162 -7.5 -13.0
(8.6) (4.3)
Total International Assets* 5,09,375 8,78,718 -23.5 72.5
(100.0) (100.0)
* : In view of the incomplete data coverage from all the branches, the data reported under the locational banking statistics (LBS) are
not strictly comparable with those capturing data from all the branches.
PR : Partially Revised.
Notes: 1. The sum of components may not add up due to rounding off.
2. Based on the latest BIS guidelines, MTM derivatives have been introduced in this statement from September 2022 quarter.
3. Figures in parentheses are percentages to total.
Source: International Banking Statistics, RBI.
147Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.4: Consolidated International Claims of Banks on Countries other than India
(Amount in ₹ crore)
Country Amount Outstanding Percentage Variation
(At end-March)
2024 (PR) 2025 (PR) 2023-24 2024-25
1 2 3 4 5
Total Consolidated International Claims 6,32,852 9,98,116 -5.0 57.7
Of which
1. United States of America 1,86,677 3,43,089 -18.5 83.8
(29.5) (34.4)
2. United Kingdom 67,944 98,600 2.8 45.1
(10.7) (9.9)
3. Hong Kong 24,972 18,735 22.0 -25.0
(3.9) (1.9)
4. Singapore 48,363 66,228 4.2 36.9
(7.6) (6.6)
5. United Arab Emirates 75,242 1,22,851 -12.3 63.3
(11.9) (12.3)
6. Germany 20,044 30,148 19.8 50.4
(3.2) (3.0)
PR : Partially Revised.
Notes: 1. Percentage variation could be slightly different as absolute numbers have been rounded off to ₹ crore.
2. Figures in parentheses are percentages to total.
Source: International Banking Statistics, RBI.
148APPENDIX TABLE
Appendix Table IV.5: Consolidated International Claims of Banks: Residual Maturity and Sector
(Amount in ₹ crore)
Residual Maturity/Sector Amount Outstanding Percentage Variation
(At end-March)
2024 (PR) 2025 (P) 2023-24 2024-25
1 2 3 4 5
Total Consolidated International Claims 6,32,852 9,98,116 -5.0 57.7
(100.0) (100.0)
Residual Maturity
Short Term 5,28,829 8,00,135 2.1 51.3
(83.6) (80.2)
Long Term 1,01,514 1,91,324 -28.8 88.5
(16.0) (19.2)
Unallocated 2,509 6,657 -53.7 165.3
(0.4) (0.7)
Sector
Banks 2,64,100 5,11,451 -15.1 93.7
(41.7) (51.2)
Official Sector 46,513 74,672 -6.5 60.5
(7.3) (7.5)
Non-Bank Financial Institutions 2,457 53,442 33.7 2,075.2
(0.4) (5.4)
Non-Financial Private 2,97,151 3,31,374 21.4 11.5
(47.0) (33.2)
Others 22,631 27,177 -61.4 20.1
(3.6) (2.7)
PR : Partially Revised.
P : Provisional.
Notes: 1. The sum of components may not add up due to rounding off.
2. Residual Maturity ‘Unallocated’ comprises maturity not applicable (for example, for equities) and maturity information not
available.
3. The official sector includes official monetary authorities, general government and multilateral agencies.
4. Non-financial private sector includes non-financial corporations and households including non-profit institutions serving
households (NPISHs).
5. Others include non-financial public sector undertakings and the unallocated sector.
6. Percentage variation could be slightly different as absolute numbers have been rounded off to ₹ crore.
7. Figures in parentheses are percentages to total.
Source: International Banking Statistics, RBI.
149Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.6: Off-Balance Sheet Exposure of Scheduled Commercial Banks in India
(Amount in ₹ crore)
Item Public Sector Private Sector Foreign Small Finance Payments All Scheduled
Banks Banks Banks Banks Banks Commercial Banks
2024-25 Percent 2024-25 Percent 2024-25 Percent 2024-25 Percent 2024-25 Percent 2024-25 Percent
Variation Variation Variation Variation Variation Variation
1 2 3 4 5 6 7 8 9 10 11 12 13
1. Forward 43,03,018 31.91,52,56,379 29.9 2,73,16,828 32.4 1,791* - 0 - 4,68,78,016 31.5
exchange (25.1) (131.7) (1,331.3) (0.4) (0.0) (150.2)
contract@
2. Guarantees 6,81,727 8.0 7,61,835 13.9 2,19,943 5.2 4,426 22.0 0 - 16,67,932 10.3
given (4.0) (6.6) (10.7) (1.1) (0.0) (5.3)
3. Acceptances, 14,62,023 16.2 4,21,525 5.8 1,19,084 -1.4 3,147 31.4 483 24.0 20,06,262 12.7
endorsements, (8.5) (3.6) (5.8) (0.8) (1.3) (6.4)
etc.
Contingent 64,46,768 25.1 1,64,39,739 28.3 2,76,55,856 31.9 9,364 55.4 483 24.0 5,05,52,209 29.8
Liabilities (37.6) (141.9) (1,347.8) (2.3) (1.3) (161.9)
@: Includes all derivative products (including interest rate swaps) as admissible.
-: Not meaningful.
*: The amount of off-balance sheet exposure of SFBs due to forward exchange contract for 2023-24 stood at ₹5.0 crore.
Note: Figures in brackets are percentages to total liabilities of the concerned bank-group.
Source: Annual accounts of respective banks.
150APPENDIX TABLE
Appendix Table IV.7: Frauds in Various Banking Operations Based on Date of Reporting (Continued)
(Amount in ₹ crore)
Area of Operations 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Advances 1,564 672 1,523 1,161 1,734 1,055 1,750 721 1,976 1,388 2,190 1,263 2,382 2,740
Card/Internet 26 3 144 6 491 11 679 15 1,036 37 1,215 35 763 21
Cash 75 4 89 16 87 7 99 5 141 36 143 14 154 21
Cheques/DDs, etc. 108 15 110 9 141 10 192 17 234 15 202 17 184 27
Clearing Accounts, etc. 20 2 23 4 35 12 30 9 52 45 51 7 34 11
Deposits 374 28 325 28 384 49 458 79 599 66 666 195 790 583
Forex Transactions 16 14 10 31 28 7 25 30 15 14 16 28 19 148
Inter-Branch Accounts 31 6 36 7 18 1 22 3 16 5 18 2 10 1
Non-resident accounts 11 2 9 0 17 1 9 4 26 2 13 2 9 2
Off-balance Sheet 6 33 7 25 4 4 6 8 9 22 10 370 10 212
Others 204 16 148 29 88 51 97 26 146 39 146 64 179 56
Total 2,435 795 2,424 1,315 3,027 1,208 3,367 917 4,250 1,669 4,670 1,997 4,534 3,822
Notes: 1. Refers to frauds of ₹1 lakh and above.
2. The figures reported by banks and financial institutions are subject to change based on revisions filed by them.
3. Frauds reported in a year could have occurred several years prior to year of reporting.
4. Amounts involved are as reported and do not reflect the amount of loss incurred. Depending on recoveries, the loss incurred
gets reduced. Further, the entire amount involved in loan accounts is not necessarily diverted.
5. As on September 30, 2025, 942 frauds amounting to ₹1,28,031 crore were withdrawn by banks and financial institutions
due to non-compliance with the principles of natural justice as per the judgment of the Hon’ble Supreme Court of India dated
March 27, 2023.
6. Data pertaining to 2024-25 includes fraud classification in 122 cases amounting to ₹18,336 crore, pertaining to previous
financial years, reported afresh during the financial year 2024-25 after re-examination and ensuring compliance with the
judgement of the Hon’ble Supreme Court of India, dated March 27, 2023.
7. Constituent items may not add up to the total due to rounding off.
8. Directions on Fraud Risk Management dated July 15, 2024, the banks are reporting only those payment system related
transactions which are concluded as fraud committed on bank(s).
Source: RBI.
151Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.7: Frauds in Various Banking Operations Based on Date of Reporting (Continued)
(Amount in ₹ crore)
Area of Operations 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
1 16 17 18 19 20 21 22 23 24 25 26 27 28 29
Advances 1,953 3,552 2,087 6,530 1,977 7,885 2,244 16,652 2,111 17,051 2,306 20,120 2,513 22,276
Card/Internet 629 23 793 49 978 54 845 52 1,191 40 1,372 42 2,058 102
Cash 173 20 140 23 145 24 153 43 160 22 239 37 218 40
Cheques/DDs, etc. 172 40 141 22 180 19 254 26 234 25 235 40 207 34
Clearing Accounts, etc. 38 31 36 7 36 24 29 7 17 87 27 6 37 6
Deposits 857 219 791 291 773 331 875 437 759 809 693 903 691 457
Forex Transactions 22 130 10 98 9 144 13 787 16 31 16 2,201 9 1,426
Inter-Branch Accounts 24 8 6 3 7 1 4 0 4 10 1 0 6 1
Non-resident accounts 11 3 17 3 38 10 23 8 8 9 10 3 6 6
Off-balance Sheet 5 373 18 1,527 15 1,088 10 699 4 132 5 63 20 16,288
Others 207 98 197 112 135 64 179 162 176 146 153 77 138 242
Total 4,091 4,497 4,236 8,665 4,293 9,644 4,629 18,873 4,680 18,362 5,057 23,492 5,903 40,877
Notes: 1. Refers to frauds of ₹1 lakh and above.
2. The figures reported by banks and financial institutions are subject to change based on revisions filed by them.
3. Frauds reported in a year could have occurred several years prior to year of reporting.
4. Amounts involved are as reported and do not reflect the amount of loss incurred. Depending on recoveries, the loss incurred
gets reduced. Further, the entire amount involved in loan accounts is not necessarily diverted.
5. As on September 30, 2025, 942 frauds amounting to ₹1,28,031 crore were withdrawn by banks and financial institutions
due to non-compliance with the principles of natural justice as per the judgment of the Hon’ble Supreme Court of India dated
March 27, 2023.
6. Data pertaining to 2024-25 includes fraud classification in 122 cases amounting to ₹18,336 crore, pertaining to previous
financial years, reported afresh during the financial year 2024-25 after re-examination and ensuring compliance with the
judgement of the Hon’ble Supreme Court of India, dated March 27, 2023.
7. Constituent items may not add up to the total due to rounding off.
8. Directions on Fraud Risk Management dated July 15, 2024, the banks are reporting only those payment system related
transactions which are concluded as fraud committed on bank(s).
Source: RBI.
152APPENDIX TABLE
Appendix Table IV.7: Frauds in Various Banking Operations Based on Date of Reporting (Concluded)
(Amount in ₹ crore)
Area of Operations 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26
(till
September
2025)
No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount
1 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45
Advances 3,520 51,299 4,3841,50,865 3,2761,02,759 3,677 34,532 3,989 15,065 4,113 9,160 7,934 31,911 4,255 17,501
Card/Internet 1,866 71 2,677 129 2,545 119 3,596 155 6,699 277 29,080 1,457 13,469 520 195 14
Cash 272 56 371 63 329 39 649 93 1,485 159 484 78 306 39 116 27
Cheques/DDs, etc. 189 34 201 39 163 84 201 158 118 25 127 42 122 74 51 8
Clearing Accounts, etc. 24 209 22 7 14 4 16 1 18 3 17 2 6 2 2 6
Deposits 593 148 530 616 502 403 471 493 652 259 2,002 240 1,207 521 222 131
Forex Transactions 13 695 8 54 4 129 7 7 13 12 19 38 23 16 21 124
Inter-Branch Accounts 3 0 2 0 2 0 3 2 3 0 29 10 14 26 19 19
Non-resident accounts 3 0 8 1 1 0 1 2 2 1 6 2 1 1 - -
Off-balance Sheet 26 5,214 25 2,149 22 520 21 1,077 13 280 10 199 8 270 3 1
Others 197 244 242 172 277 54 299 98 470 421 165 33 789 1,391 208 3,684
Total 6,706 57,970 8,470 1,54,096 7,135 1,04,111 8,941 36,61713,462 16,50236,052 11,26123,879 34,771 5,092 21,515
-: Nil.
Notes: 1. Refers to frauds of ₹1 lakh and above.
2. The figures reported by banks and financial institutions are subject to change based on revisions filed by them.
3. Frauds reported in a year could have occurred several years prior to year of reporting.
4. Amounts involved are as reported and do not reflect the amount of loss incurred. Depending on recoveries, the loss incurred
gets reduced. Further, the entire amount involved in loan accounts is not necessarily diverted.
5. As on September 30, 2025, 942 frauds amounting to ₹1,28,031 crore were withdrawn by banks and financial institutions
due to non-compliance with the principles of natural justice as per the judgment of the Hon’ble Supreme Court of India dated
March 27, 2023.
6. Data pertaining to 2024-25 includes fraud classification in 122 cases amounting to ₹18,336 crore, pertaining to previous
financial years, reported afresh during the financial year 2024-25 after re-examination and ensuring compliance with the
judgement of the Hon’ble Supreme Court of India, dated March 27, 2023.
7. Constituent items may not add up to the total due to rounding off.
8. Directions on Fraud Risk Management dated July 15, 2024, the banks are reporting only those payment system related
transactions which are concluded as fraud committed on bank(s).
Source: RBI.
153Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.8: Kisan Credit Card Scheme: State-wise Progress (Continued)
(Amount in ₹ crore and number of cards issued in ‘000)
Sr. State/UT Co-operative Banks Regional Rural Banks
No.
Number of Operative Amount outstanding Number of Operative Amount outstanding
KCCs under Operative KCCs KCCs under Operative KCCs
2024 2025P 2024 2025P 2024 2025P 2024 2025P
1 2 3 4 5 6 7 8 9 10
Northern Region 5,564 5,665 37,387 35,185 1,556 1,724 40,101 40,842
1 Haryana 1,154 1,137 13,063 12,557 307 337 9,054 8,880
2 Himachal Pradesh 134 123 2,302 2,176 92 96 1,425 1,487
3 Jammu & Kashmir 7 7 63 75 134 136 1,152 1,163
4 Ladakh 0 0 0 0 0 0 0 0
5 New Delhi 0 0 0 0 0 0 0 0
6 Punjab 910 868 6,645 5,875 160 159 6,582 6,678
7 Rajasthan 3,358 3,531 15,314 14,501 863 995 21,889 22,635
8 Chandigarh 0 0 0 0 0 0 0 0
North-Eastern Region 47 61 180 186 456 442 2,495 2,396
9 Assam 1 1 20 28 281 278 1,623 1,651
10 Arunachal Pradesh 1 0 7 4 2 2 16 14
11 Meghalaya 12 11 49 52 39 43 237 259
12 Mizoram 1 1 11 11 33 24 413 272
13 Manipur 3 3 18 19 10 9 48 43
14 Nagaland 4 4 22 22 1 0 1 1
15 Tripura 21 38 40 34 90 85 157 155
16 Sikkim 2 2 11 16 0 0 0 0
Western Region 4,600 4,670 43,789 50,114 1,264 1,254 17,834 18,246
17 Gujarat 999 1,077 16,106 19,199 502 521 10,192 10,582
18 Maharashtra 3,598 3,592 27,674 30,896 762 734 7,642 7,664
19 Goa 2 2 10 19 0 0 0 0
20 Dadara & Nagar Haveli & Daman & Diu 0 0 0 0 0 0 0 0
Central Region 8,683 8,464 36,877 42,714 4,518 4,609 62,662 61,579
21 Uttar Pradesh 2,673 2,691 8,964 9,389 3,851 3,878 52,694 51,710
22 Uttarakhand 302 266 1,297 1,238 30 31 219 225
23 Madhya Pradesh 4,008 4,016 23,946 25,497 464 543 8,041 7,954
24 Chhattisgarh 1,700 1,491 2,671 6,591 173 156 1,708 1,690
Southern Region 9,004 9,263 65,456 68,405 4,082 4,105 56,259 57,085
25 Karnataka 3,673 3,800 24,751 26,768 839 834 16,152 16,742
26 Kerala 551 613 5,470 4,821 541 533 9,597 9,608
27 Andhra Pradesh 1,682 1,564 13,733 13,371 972 1,006 12,138 12,225
28 Tamil Nadu 2,201 2,440 16,030 18,182 160 163 3,124 3,212
29 Telangana 897 846 5,470 5,263 1,568 1,566 15,233 15,263
30 Lakshadweep 0 0 0 0 0 0 0 0
31 Puducherry 0 0 1 0 2 3 15 34
Eastern Region 5,265 5,504 25,203 23,739 2,652 2,632 18,546 18,689
32 Odisha 3,358 3,207 19,624 17,181 447 425 2,737 2,677
33 West Bengal 1,477 1,935 4,755 5,848 410 405 2,199 2,134
34 Andaman and Nicobar Islands 8 8 19 19 0 0 0 0
35 Bihar 407 338 752 639 1,420 1,428 11,133 11,275
36 Jharkhand 16 16 54 52 374 374 2,477 2,604
Total 33,162 33,628 2,08,893 2,20,343 14,528 14,765 1,97,897 1,98,836
P: Provisional.
Source: NABARD/Returns from Scheduled Commercial Banks (excluding RRBs).
154APPENDIX TABLE
Appendix Table IV.8: Kisan Credit Card Scheme: State-wise Progress (Concluded)
(Amount in ₹ crore and number of cards issued in ‘000)
Sr. State/UT Scheduled Commercial Banks
Total
No. (excluding RRBs)
Number of Operative Amount outstanding Number of Operative Amount outstanding
KCCs under Operative KCCs KCCs under Operative KCCs
2024 2025P 2024 2025P 2024 2025P 2024 2025P
1 2 11 12 13 14 15 16 17 18
Northern Region 5,925 5,961 1,59,797 1,66,661 13,045 13,350 2,37,286 2,42,687
1 Haryana 901 926 31,883 33,974 2,362 2,400 54,000 55,411
2 Himachal Pradesh 277 291 5,345 5,909 503 510 9,072 9,572
3 Jammu & Kashmir 926 970 5,759 6,141 1,067 1,113 6,974 7,379
4 Ladakh 28 28 268 272 28 28 268 272
5 New Delhi 3 3 43 41 3 3 43 41
6 Punjab 1,164 1,140 44,604 44,983 2,235 2,168 57,830 57,536
7 Rajasthan 2,624 2,601 71,770 75,228 6,846 7,127 1,08,973 1,12,364
8 Chandigarh 2 1 126 113 2 1 126 113
North-Eastern Region 542 438 4,056 4,531 1,045 941 6,731 7,113
9 Assam 389 273 2,973 3,251 671 553 4,616 4,931
10 Arunachal Pradesh 16 20 172 236 18 22 195 254
11 Meghalaya 26 32 181 245 77 86 467 557
12 Mizoram 18 17 94 104 52 43 518 387
13 Manipur 6 6 92 99 20 18 159 161
14 Nagaland 27 32 168 211 32 37 192 234
15 Tripura 53 48 326 329 165 171 522 518
16 Sikkim 8 9 50 55 10 11 62 71
Western Region 4,505 4,344 87,715 94,355 10,368 10,269 1,49,339 1,62,715
17 Gujarat 1,637 1,627 44,835 47,660 3,137 3,225 71,132 77,441
18 Maharashtra 2,857 2,706 42,702 46,489 7,218 7,031 78,018 85,049
19 Goa 9 10 138 158 12 12 148 178
20 Dadara & Nagar Haveli & Daman & Diu 2 1 40 47 2 1 40 47
Central Region 6,917 6,821 1,40,667 1,47,140 20,117 19,894 2,40,205 2,51,433
21 Uttar Pradesh 4,394 4,387 76,963 80,276 10,917 10,956 1,38,621 1,41,375
22 Uttarakhand 222 214 4,964 4,775 554 512 6,479 6,238
23 Madhya Pradesh 2,029 1,959 52,537 55,282 6,500 6,517 84,523 88,732
24 Chhattisgarh 272 261 6,203 6,807 2,146 1,909 10,582 15,088
Southern Region 8,488 7,990 1,56,799 1,61,133 21,574 21,357 2,78,514 2,86,622
25 Karnataka 987 941 21,891 24,115 5,499 5,575 62,794 67,625
26 Kerala 1,566 1,265 34,885 30,359 2,658 2,412 49,952 44,788
27 Andhra Pradesh 2,200 2,164 39,583 42,407 4,853 4,734 65,455 68,003
28 Tamil Nadu 1,671 1,436 32,959 33,727 4,032 4,038 52,112 55,121
29 Telangana 2,044 2,164 27,083 30,068 4,509 4,576 47,786 50,594
30 Lakshadweep 3 3 22 28 3 3 22 28
31 Puducherry 18 16 376 429 20 19 392 463
Eastern Region 3,438 3,461 25,940 27,156 11,355 11,597 69,689 69,584
32 Odisha 660 647 6,736 7,207 4,466 4,279 29,097 27,064
33 West Bengal 1,118 1,181 8,902 9,477 3,005 3,520 15,856 17,459
34 Andaman and Nicobar Islands 1 1 5 5 8 8 23 24
35 Bihar 1,053 1,054 7,267 7,456 2,881 2,821 19,152 19,369
36 Jharkhand 606 579 3,029 3,011 996 969 5,560 5,668
Total 29,814 29,016 5,74,974 6,00,975 77,504 77,409 9,81,764 10,20,154
P: Provisional.
Source: NABARD/Returns from Scheduled Commercial Banks (excluding RRBs).
155Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.9: Bank Group-wise Lending to the Sensitive Sectors
(Amount in ₹ crore)
Sector Public Private Foreign Small Scheduled Commercial
Sector Banks Sector Banks Banks Finance Banks Banks*
2024-25 Percent 2024-25 Percent 2024-25 Percent 2024-25 Percent 2024-25 Percent
Variation Variation Variation Variation Variation
1 2 3 4 5 6 7 8 9 10 11
1. Capital Market # 87,924 29.1 1,91,945 18.4 25,568 89.4 1,178 144.2 3,06,616 25.5
(0.8) (2.6) (4.1) (0.4) (1.6)
2. Real Estate @ 23,39,469 15.2 23,39,033 5.4 1,37,402 6.6 63,506 40.7 48,79,410 10.3
(21.8) (31.3) (22.2) (23.3) (25.5)
3. Commodities - - - - - - - - - -
Total Advances to 24,27,394 15.6 25,30,979 6.3 1,62,970 14.5 64,684 41.8 51,86,026 11.1
Sensitive Sectors (22.6) (33.9) (26.3) (23.7) (27.1)
- : Nil/Negligible.
# : Exposure to capital market is inclusive of both investments and advances.
* : Inclusive of Payments Banks.
@ : Exposure to real estate sector is inclusive of both direct and indirect lending.
Note: Figures in brackets are percentages to total loans and advances of the concerned bank-group.
Source: Annual accounts of respective banks.
156APPENDIX TABLE
Appendix Table IV.10: Shareholding Pattern of Domestic Scheduled Commercial Banks (Continued)
(At end-March 2025)
Sr. Name of Bank Government Financial Institution Other Corporates Individuals Total
No. (including mutual
funds)
Resident Resident Non Resident Non Resident Non Resident Non
Resident Resident Resident Resident
1 2 3 4 5 6 7 8 9 10 11
Public Sector Banks
1 Bank of Baroda 64.0 9.2 0.0 10.0 9.0 7.5 0.5 90.6 9.4
2 Bank of India 73.4 15.9 3.9 0.4 0.0 6.2 0.2 95.9 4.1
3 Bank of Maharashtra 79.6 10.7 1.7 0.4 0.0 7.4 0.2 98.1 1.9
4 Canara Bank 62.9 11.9 10.6 1.1 0.0 13.3 0.3 89.2 10.8
5 Central Bank of India 89.3 5.2 1.3 0.2 0.0 4.0 0.1 98.7 1.3
6 Indian Bank 73.8 17.8 4.7 0.3 0.0 3.2 0.2 95.1 4.9
7 Indian Overseas Bank 94.6 2.6 0.2 0.3 0.0 2.2 0.1 99.7 0.3
8 Punjab and Sind Bank 93.9 4.3 0.0 0.1 0.7 0.9 0.0 99.2 0.8
9 Punjab National Bank 70.1 14.7 5.7 0.5 0.0 8.8 0.2 94.1 5.9
10 State Bank of India 57.0 25.0 10.0 1.0 1.0 6.0 0.0 89.0 11.0
11 UCO Bank 91.0 5.4 0.4 0.3 0.0 3.0 0.1 99.5 0.5
12 Union Bank of India 74.8 3.8 7.1 8.5 0.0 5.7 0.1 92.8 7.3
Private Sector Banks
1 Axis Bank Ltd. 0.0 47.4 45.8 1.0 0.0 5.4 0.3 53.9 46.1
2 Bandhan Bank Ltd. 0.1 16.4 22.7 42.2 0.0 18.0 0.7 76.5 23.5
3 City Union Bank Ltd. 0.0 32.4 28.0 3.0 0.0 35.5 1.0 71.0 29.0
4 CSB Bank Ltd. 0.0 15.9 0.0 6.0 53.4 18.0 6.7 39.9 60.1
5 DCB Bank Ltd. 1.1 27.5 0.0 7.5 23.6 38.5 2.0 74.5 25.5
6 Dhanalakshmi Bank Ltd. 0.3 0.1 0.0 16.5 15.3 50.3 17.5 67.2 32.8
7 Federal Bank Ltd. 0.0 48.0 27.0 3.0 0.0 18.0 4.0 69.0 31.0
8 HDFC Bank Ltd. 0.1 31.4 55.5 1.7 0.0 11.1 0.3 44.3 55.7
9 ICICI Bank Ltd. 0.2 26.5 56.0 10.9 0.0 6.2 0.2 43.8 56.2
10 IDBI Bank Ltd. 45.5 49.4 0.5 0.5 0.0 4.0 0.1 99.4 0.6
11 IDFC First Bank Ltd. 9.2 19.3 25.7 3.7 0.0 40.0 2.2 72.1 27.9
12 Indusind Bank Ltd. 0.0 39.8 29.4 4.6 15.2 10.3 0.7 54.7 45.3
13 Jammu and Kashmir 59.4 6.5 7.6 2.3 0.0 22.3 1.9 90.5 9.5
Bank Ltd.
14 Karnataka Bank Ltd. 0.0 18.2 0.0 5.4 12.9 61.2 2.5 84.7 15.3
15 Karur Vysya Bank Ltd. 0.0 37.0 0.0 4.2 15.1 42.5 1.2 83.7 16.3
16 Kotak Mahindra Bank 0.0 27.8 32.7 3.3 1.0 34.7 0.5 65.8 34.2
Ltd.
17 Nainital Bank Ltd. 0.0 98.6 0.0 0.0 0.0 1.4 0.0 100.0 0.0
18 RBL Bank Ltd. 0.4 19.1 0.0 16.5 21.8 40.4 1.8 76.4 23.6
19 South Indian Bank Ltd. 0.0 8.3 0.0 6.3 12.0 65.3 8.2 79.9 20.1
20 Tamilnad Mercantile 0.0 0.6 4.2 8.2 22.4 63.0 1.6 71.8 28.2
Bank Ltd.
21 Yes Bank Ltd. 0.0 39.5 26.9 2.7 0.0 29.3 1.6 71.5 28.5
Notes: 1. Total may not add up to 100 due to rounding off.
2. This table also includes data for local area banks.
Source: Off-site returns (domestic), RBI.
157Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.10: Shareholding Pattern of Domestic Scheduled Commercial Banks (Concluded)
(At end-March 2025)
Sr. Name of Bank Government Financial Institution Other Corporates Individuals Total
No. (including mutual
funds)
Resident Resident Non Resident Non Resident Non Resident Non
Resident Resident Resident Resident
1 2 3 4 5 6 7 8 9 10 11
Small Finance Banks
1 AU Small Finance Bank 0.0 20.4 32.9 11.2 6.3 29.1 0.1 60.7 39.3
2 Capital Small Finance Bank 0.1 31.9 1.3 7.0 0.0 43.6 16.1 82.6 17.4
3 Equitas Small Finance Bank 0.0 42.7 2.9 20.5 0.0 32.4 1.6 95.6 4.5
4 ESAF Small Finance Bank 0.0 56.5 0.0 12.1 0.3 22.5 8.7 91.1 8.9
5 Jana Small Finance Bank 0.0 4.7 0.0 45.8 27.5 21.6 0.5 72.1 27.9
6 North East Small Finance 0.0 0.7 0.0 30.7 47.4 21.1 0.1 52.6 47.4
Bank
7 Shivalik Small Finance Bank 0.0 0.8 0.0 9.8 24.8 64.5 0.2 75.1 25.0
8 Suryoday Small Finance Bank 0.0 5.7 0.0 6.5 21.7 65.2 1.0 77.3 22.7
9 Ujjivan Small Finance Bank 0.0 8.5 0.0 8.5 19.5 59.5 4.1 76.4 23.6
10 Unity Small Finance Bank 0.0 51.0 0.0 49.0 0.0 0.0 0.0 100.0 0.0
11 Utkarsh Small Finance Bank 0.0 76.0 5.7 2.3 0.0 15.6 0.5 93.9 6.2
Local Area Banks
1 Coastal Local Area Bank Ltd. 0.0 0.0 0.0 21.4 0.0 17.2 61.4 38.6 61.4
2 Krishna Bhima Samruddhi 0.0 0.0 0.0 21.7 0.0 78.4 0.0 100.0 0.0
Local Area Bank Ltd.
Notes: 1. Total may not add up to 100 due to rounding off.
2. This table also includes data for local area banks.
Source: Off-site returns (domestic), RBI.
158APPENDIX TABLE
Appendix Table IV.11: Overseas Operations of Indian Banks
(At end-March)
Sr. Name of the Bank Branch Subsidiary Representative Joint Venture Other Offices* Total
No. Office Bank
2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Public Sector Banks 99 99 22 22 11 11 6 5 33 32 171 169
1 Bank of Baroda 28 28 7 7 0 0 2 2 10 9 47 46
2 Bank of India 21 21 4 4 1 1 0 0 0 0 26 26
3 Canara Bank 3 3 1 1 1 1 0 0 0 0 5 5
4 Indian Bank 3 3 0 0 0 0 0 0 0 0 3 3
5 Indian Overseas Bank 4 4 0 0 0 0 0 0 0 0 4 4
6 Punjab National Bank 1 1 2 2 2 2 2 1 0 0 7 6
7 State Bank of India 35 35 7 7 6 6 2 2 23 23 73 73
8 UCO Bank 2 2 0 0 1 1 0 0 0 0 3 3
9 Union Bank of India 2 2 1 1 0 0 0 0 0 0 3 3
Private Sector Banks 13 13 3 2 25 26 0 0 2 2 43 43
1 Axis Bank Ltd. 2 2 1 0 4 4 0 0 0 0 7 6
2 HDFC Bank Ltd. 3 4 0 0 3 4 0 0 0 0 6 8
3 ICICI Bank Ltd. 6 6 2 2 10 10 0 0 2 2 20 20
4 IDBI Bank Ltd. 1 0 0 0 0 0 0 0 0 0 1 0
5 IndusInd Bank Ltd. 0 0 0 0 3 3 0 0 0 0 3 3
6 Federal Bank Ltd. 0 0 0 0 2 2 0 0 0 0 2 2
7 Kotak Mahindra Bank 1 1 0 0 1 1 0 0 0 0 2 2
Ltd.
8 Yes Bank Ltd. 0 0 0 0 1 1 0 0 0 0 1 1
9 South Indian Bank 0 0 0 0 1 1 0 0 0 0 1 1
Ltd.
All Banks 112 112 25 24 36 37 6 5 35 34 214 212
* Other Offices include marketing/sub-office, remittance centres, etc.
Note: Data exclude IFSC banking unit (IBU) of Indian banks in GIFT City.
Source: RBI.
159Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.12: Branches and ATMs of Scheduled Commercial Banks (Continued)
(At end-March 2025)
Sr. Name of the Bank Branches ATMs and CRMs
No.
Rural Semi-urban Urban Metropolitan Total On-site Off-site Total
1 2 3 4 5 6 7 8 9 10
Public Sector Banks 29,648 24,186 16,403 16,298 86,535 79,865 53,679 1,33,544
1 Bank of Baroda 2,930 2,166 1,501 1,809 8,406 8,597 2,390 10,987
2 Bank of India 1,904 1,573 856 971 5,304 5,325 2,678 8,003
3 Bank of Maharashtra 613 769 578 643 2,603 2,150 252 2,402
4 Canara Bank 3,141 2,893 1,945 1,864 9,843 7,460 3,684 11,144
5 Central Bank of India 1,611 1,348 778 811 4,548 2,878 1,187 4,065
6 Indian Bank 1,993 1,552 1,184 1,169 5,898 4,659 609 5,268
7 Indian Overseas Bank 927 1,006 680 706 3,319 2,761 734 3,495
8 Punjab and Sind Bank 588 316 390 316 1,610 1,022 28 1,050
9 Punjab National Bank 3,940 2,511 2,004 1,725 10,180 7,666 4,156 11,822
10 State Bank of India 8,277 6,636 4,106 3,906 22,925 27,371 36,487 63,858
11 UCO Bank 1,126 895 653 613 3,287 2,270 227 2,497
12 Union Bank of India 2,598 2,521 1,728 1,765 8,612 7,706 1,247 8,953
Notes: 1. Population groups are defined as follows: ‘Rural’ includes centers with population of less than 10,000. ‘Semi-urban’ includes
centers with population of 10,000 and above but less than of one lakh. ‘Urban’ includes centers with population of one lakh
and above but less than of 10 lakh, and ‘Metropolitan’ includes centers with population of 10 lakh and above. All population
figures are as per census 2011.
2. Data on branches exclude ‘Digital Banking Units’ and ‘Administrative Offices’.
Source: Central Information System for Banking Infrastructure database, RBI.
160APPENDIX TABLE
Appendix Table IV.12: Branches and ATMs of Scheduled Commercial Banks (Continued)
(At end-March 2025)
Sr. Name of the Bank Branches ATMs and CRMs
No.
Rural Semi-urban Urban Metropolitan Total On-site Off-site Total
1 2 3 4 5 6 7 8 9 10
Private Sector Banks 9,342 14,608 10,341 12,984 47,275 47,713 29,404 77,117
1 Axis Bank Ltd. 1,064 1,683 1,416 1,900 6,063 6,198 7,739 13,937
2 Bandhan Bank Ltd. 2,101 2,355 1,155 698 6,309 433 5 438
3 CSB Bank Ltd. 63 387 164 218 832 753 38 791
4 City Union Bank Ltd. 168 286 214 202 870 1,217 517 1,734
5 DCB Bank Ltd. 87 113 136 128 464 430 5 435
6 Dhanalakshmi Bank Ltd. 20 112 71 58 261 241 39 280
7 Federal Bank Ltd. 222 778 312 276 1,588 1,767 312 2,079
8 HDFC Bank Ltd. 1,614 3,178 1,985 2,664 9,441 12,689 8,450 21,139
9 ICICI Bank Ltd. 1,463 1,881 1,425 2,079 6,848 10,485 5,795 16,280
10 IDBI Bank Ltd. 433 651 515 504 2,103 2,404 716 3,120
11 IDFC First Bank Ltd. 64 279 416 509 1,268 732 309 1,041
12 Indusind Bank Ltd. 312 680 783 873 2,648 2,006 1,021 3,027
13 Jammu and Kashmir Bank 542 180 108 183 1,013 944 636 1,580
Ltd.
14 Karnataka Bank Ltd. 226 216 245 263 950 959 557 1,516
15 Karur Vysya Bank Ltd. 140 350 179 264 933 1,554 698 2,252
16 Kotak Mahindra Bank Ltd. 373 318 472 983 2,146 1,936 1,359 3,295
17 Nainital Bank Ltd. 57 34 49 35 175 - - -
18 RBL Bank Ltd. 65 71 102 322 560 377 35 412
19 South Indian Bank Ltd. 110 458 182 202 952 911 369 1,280
20 Tamilnad Mercantile Bank 124 271 94 89 578 504 647 1,151
Ltd.
21 Yes Bank Ltd. 94 327 318 534 1,273 1,173 157 1,330
-: NIL.
Notes: 1. Population groups are defined as follows: ‘Rural’ includes centers with population of less than 10,000. ‘Semi-urban’ includes
centers with population of 10,000 and above but less than of one lakh. ‘Urban’ includes centers with population of one lakh
and above but less than of 10 lakh, and ‘Metropolitan’ includes centers with population of 10 lakh and above. All population
figures are as per census 2011.
2. Data on branches exclude ‘Digital Banking Units’ and ‘Administrative Offices’.
Source: Central Information System for Banking Infrastructure database, RBI.
161Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.12: Branches and ATMs of Scheduled Commercial Banks (Concluded)
(At end-March 2025)
Sr. Name of the Bank Branches ATMs and CRMs
No. Rural Semi- Urban Metropolitan Total On- Off- Total
urban site site
1 2 3 4 5 6 7 8 9 10
Foreign Banks 126 141 160 347 774 587 406 993
1 AB Bank PLC 0 0 0 1 1 0 0 0
2 American Express Banking Corp. 0 0 0 1 1 0 0 0
3 Australia and New Zealand Banking Group Ltd. 1 0 1 1 3 0 0 0
4 Bank of America, National Association 0 0 0 4 4 0 0 0
5 Bank of Bahrain & Kuwait B.S.C. 0 1 0 3 4 0 0 0
6 Bank of Ceylon 0 0 0 1 1 0 0 0
7 Bank of China Ltd 0 0 0 1 1 0 0 0
8 Bank of Nova Scotia 0 0 0 1 1 0 0 0
9 Barclays Bank Plc 0 1 0 2 3 0 0 0
10 BNP Paribas 0 0 0 5 5 0 0 0
11 Citibank N.A. 0 0 4 10 14 0 0 0
12 Co-operative Rabobank U.A. 0 0 0 1 1 0 0 0
13 Credit Agricole Corporate and Investment Bank 0 0 0 5 5 0 0 0
14 CTBC Bank Co., Ltd. 0 0 0 2 2 0 0 0
15 DBS Bank India Ltd. 114 134 116 143 507 424 337 761
16 Deutsche Bank AG 1 0 5 11 17 13 2 15
17 DOHA BANK Q.P.S.C. 0 0 1 1 2 2 0 2
18 Emirates NDB Bank (P.J.S.C.) 0 0 1 2 3 0 0 0
19 First Abu Dhabi Bank (P.J.S.C.) 0 0 0 1 1 0 0 0
20 Firstrand Bank Ltd. 0 0 0 1 1 0 0 0
21 Hongkong and Shanghai Banking Corp. Ltd. 0 0 4 22 26 46 25 71
22 Industrial and Commercial Bank of China 0 0 0 1 1 0 0 0
23 Industrial Bank of Korea 0 0 0 1 1 0 0 0
24 JPMorgan Chase Bank National Association 2 0 0 2 4 0 0 0
25 JSC VTB Bank 0 0 0 1 1 0 0 0
26 KEB Hana Bank 0 1 0 1 2 1 0 1
27 Kookmin Bank 0 0 1 2 3 0 0 0
28 Mashreq Bank PSC 0 0 0 1 1 0 0 0
29 Mizuho Bank Ltd 0 1 1 3 5 0 0 0
30 MUFG Bank Ltd 1 0 0 4 5 0 0 0
31 Natwest Markets Plc 0 0 0 1 1 0 0 0
32 Nonghyup Bank 0 0 1 0 1 0 0 0
33 PT Bank Maybank Indonesia Tbk 0 0 0 1 1 0 0 0
34 Qatar National Bank (Q.P.S.C.) 0 0 0 1 1 0 0 0
35 Sberbank 0 0 0 2 2 0 0 0
36 SBM Bank (India) Limited 5 0 3 14 22 0 0 0
37 Shinhan Bank 1 0 0 5 6 0 0 0
38 Societe Generale 0 0 0 2 2 0 0 0
39 Sonali Bank 0 0 1 1 2 0 0 0
40 Standard Chartered Bank 1 1 20 78 100 101 42 143
41 Sumitomo Mitsui Banking Corporation 0 1 0 2 3 0 0 0
0 0 0
42 UBS AG 0 0 0 1 1
43 United Overseas Bank Ltd 0 0 0 1 1 0 0 0
44 Woori Bank 0 1 1 3 5 0 0 0
Notes: 1. Population groups are defined as follows: ‘Rural’ includes centers with population of less than 10,000. ‘Semi-urban’ includes centers with
population of 10,000 and above but less than of one lakh. ‘Urban’ includes centers with population of one lakh and above but less than of 10
lakh, and ‘Metropolitan’ includes centers with population of 10 lakh and above. All population figures are as per census 2011.
2. Data on branches exclude ‘Digital Banking Units’ and ‘Administrative Offices’.
Source: Central Information System for Banking Infrastructure database, RBI.
162APPENDIX TABLE
Appendix Table IV.13: Progress of Microfinance Programmes
Item Self Help Groups
Number (lakh) Amount (in ₹ crore)
2020-21 2021-22 2022-23 2023-24 2024-25 2020-21 2021-22 2022-23 2023-24 2024-25
1 2 3 4 5 6 7 8 9 10 11
Loans Disbursed by 28.9 34.0 43.0 54.8 55.6 58,070.6 99,729.2 1,45,200.2 2,09,285.9 2,08,282.7
Banks (During the FY)
(17.0) (24.8) (36.9) (47.6) (44.7) (31,755.1) (68,916.9) (1,25,106.3) (1,83,297.1) (1,80,354.9)
Loans Outstanding 57.8 67.4 69.6 77.4 84.9 1,03,289.0 1,51,051.0 1,88,078.8 2,59,663.7 3,04,258.7
with Banks
(as on 31 March) (36.0) (47.8) (58.9) (65.0) (69.3) (61,393.1) (1,01,840.1) (1,61,583.9) (2,22,452.1) (2,58,072.7)
Savings with Banks 112.2 118.9 134.0 144.2 143.3 37,477.0 47,240.5 58,892.7 65,089.2 71,433.3
(as on 31 March)
(70.1) (77.7) (89.4) (91.7) (106.2) (21,307.8) (31,077.1) (40,971.9) (49,738.7) (58,158.1)
Microfinance Institutions
Number (lakh) Amount (in ₹ crore)
Loans Disbursed by 0.3 0.2 0.8 0.3 0.3 12,120.3 23,173.4 36,757.0 31,497.1 21,136.3
Banks
Loans Outstanding 0.6 0.6 1.1 1.9 0.6 21,062.7 34,865.4 44,119.8 59,592.7 34,426.2
with Banks
Joint Liability Groups
Number (lakh) Amount (in ₹ crore)
Loans Disbursed by 41.3 54.1 70.0 73.3 49.8 58,311.8 1,12,772.8 1,33,372.8 1,88,313.4 79,061.9
Banks (During the FY)
Notes: 1. Figures in brackets give the details of SHGs covered under the National Rural Livelihoods Mission (NRLM) and the National
Urban Livelihoods Mission (NULM).
2. Actual number of MFIs availing loans from banks may be less than the number of accounts, as most of MFIs avail loans
several times from the same bank and also from more than one bank.
Source: NABARD.
163Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.14: Major Financial Indicators of Regional Rural Banks - State-wise (Continued)
(Amount in ₹ crore)
Region/State 2023-24 2024-25
No. of Profit Earning Loss Incurring Net No. of Profit Earning Loss Incurring Net
RRBs Profit/ RRBs Profit/
No. Amount No. Amount Loss No. Amount No. Amount Loss
1 2 3 4 5 6 7 8 9 10 11 12 13
Central Region 7 7 1,262.9 0 0 1,262.9 7 6 1,214.0 1 200.2 1,013.8
Chhattisgarh 1 1 296.2 0 0 296.2 1 1 152.6 0 0 152.6
Madhya Pradesh 2 2 500.4 0 0 500.4 2 1 185.5 1 200.2 -14.8
Uttar Pradesh 3 3 391.0 0 0 391.0 3 3 797.8 0 0 797.8
Uttarakhand 1 1 75.3 0 0 75.3 1 1 78.1 0 0 78.1
Eastern Region 8 8 624.9 0 0 624.9 8 8 940.6 0 0 940.6
Bihar 2 2 94.9 0 0 94.9 2 2 114.9 0 0 114.9
Jharkhand 1 1 115.9 0 0 115.9 1 1 169.4 0 0 169.4
Odisha 2 2 162.3 0 0 162.3 2 2 342.4 0 0 342.4
West Bengal 3 3 251.8 0 0 251.8 3 3 313.9 0 0 313.9
North Eastern Region 7 6 206.6 1 1.8 204.8 7 7 417.4 0 0 417.4
Arunachal Pradesh 1 1 27.3 0 0 27.3 1 1 23.4 0 0 23.4
Assam 1 1 4.2 0 0 4.2 1 1 103.2 0 0 103.2
Manipur 1 0 - 1 1.8 -1.8 1 1 0.6 0 0 0.6
Meghalaya 1 1 62.3 0 0 62.3 1 1 62.8 0 0 62.8
Mizoram 1 1 84.5 0 0 84.5 1 1 122.0 0 0 122.0
Nagaland 1 1 0.3 0 0 0.3 1 1 0.5 0 0 0.5
Tripura 1 1 27.9 0 0 27.9 1 1 104.9 0 0 104.9
Northern Region 7 6 1,235.0 1 49.4 1,185.6 7 5 1,269.0 2 178.6 1,090.4
Haryana 1 1 338.2 0 0 338.2 1 1 376.6 0 0 376.6
Himachal Pradesh 1 1 6.9 0 0 6.9 1 1 34.7 0 0 34.7
Jammu & Kashmir 2 1 3.8 1 49.4 -45.7 2 0 0 2 178.6 -178.6
Punjab 1 1 141.1 0 0 141.1 1 1 153.6 0 0 153.6
Rajasthan 2 2 745.1 0 0 745.1 2 2 704.0 0 0 704.0
Southern Region 10 9 3,990.4 1 174.3 3,816.1 10 9 3,664.9 1 791.3 2,873.6
Andhra Pradesh 3 3 1,404.6 0 0 1,404.6 4 4 2,156.3 0 0 2,156.3
Karnataka 2 1 104.2 1 174.3 -70.1 2 1 126.0 1 791.3 -665.3
Kerala 1 1 405.8 0 0 405.8 1 1 312.9 0 0 312.9
Puducherry 1 1 18.9 0 0 18.9 1 1 27.0 0 0 27.0
Tamil Nadu 1 1 446.7 0 0 446.7 1 1 367.4 0 0 367.4
Telangana 2 2 1,610.2 0 0 1,610.2 1 1 675.3 0 0 675.3
Western Region 4 4 476.4 0 0 476.4 4 3 507.2 1 22.6 484.7
Gujarat 2 2 401.3 0 0 401.3 2 2 447.5 0 0 447.5
Maharashtra 2 2 75.1 0 0 75.1 2 1 59.7 1 22.6 37.2
All India 43 40 7,796.2 3 225.5 7,570.7 43 38 8,013.2 5 1,192.7 6,820.5
Notes: 1. Till December 31, 2024, Andhra Pradesh Grameena Vikas Bank (APGVB), with head office at Warangal in Telangana, was
operational in 21 districts of Telangana and 7 districts of Andhra Pradesh. From January 1, 2025, APGVB was bifurcated
with the branches in Telangana merged with Telangana Grameena Bank. Till FY 2023-24, the data of APGVB was included as
a part of Telangana in the above table and post bifurcation in FY 2024-25, the data of APGVB is included as a part of Andhra
Pradesh.
2. J & K Grameen Bank, with head office at Jammu, has 4 branches in union territory of Ladakh. The data of the bank has
been shown under Jammu & Kashmir.
Source: NABARD.
164APPENDIX TABLE
Appendix Table IV.14: Major Financial Indicators of Regional Rural Banks - State-wise (Concluded)
Region/State Gross NPA CRAR
(per cent) (per cent)
Mar-24 Mar-25 Mar-24 Mar-25
1 14 15 16 17
Central Region 7.0 6.3 12.5 12.4
Chhattisgarh 2.0 1.8 17.6 16.2
Madhya Pradesh 7.0 7.9 14.3 12.7
Uttar Pradesh 7.8 6.5 11.5 11.9
Uttarakhand 4.1 3.3 12.6 12.6
Eastern Region 15.0 11.5 9.4 10.0
Bihar 23.8 18.9 6.6 7.2
Jharkhand 3.7 3.0 10.9 11.8
Odisha 11.6 8.0 10.5 11.2
West Bengal 8.0 5.9 12.6 12.6
North Eastern Region 7.3 6.2 15.1 16.1
Arunachal Pradesh 3.3 3.3 15.9 14.9
Assam 10.4 8.5 8.7 9.5
Manipur 10.7 12.0 10.7 10.9
Meghalaya 5.2 4.1 15.3 16.6
Mizoram 4.9 4.4 13.7 16.8
Nagaland 0.8 0.5 10.0 9.1
Tripura 4.7 3.9 24.3 24.5
Northern Region 3.2 2.6 13.6 13.6
Haryana 3.2 1.9 14.8 15.3
Himachal Pradesh 3.9 3.2 8.0 9.1
Jammu & Kashmir 5.4 4.8 9.5 4.5
Punjab 5.1 4.5 16.5 15.9
Rajasthan 2.3 2.1 13.1 13.5
Southern Region 4.0 3.9 17.6 18.0
Andhra Pradesh 0.9 1.0 21.1 23.0
Karnataka 11.5 12.5 10.5 8.5
Kerala 2.1 1.8 13.5 13.9
Puducherry 1.4 0.9 10.4 10.1
Tamil Nadu 1.0 0.9 13.3 13.7
Telangana 2.4 2.1 25.1 25.4
Western Region 4.3 4.3 12.7 13.2
Gujarat 2.2 1.7 15.0 16.1
Maharashtra 6.4 7.2 10.5 10.2
All India 6.2 5.4 14.2 14.4
Notes: 1. Till December 31, 2024, Andhra Pradesh Grameena Vikas Bank (APGVB), with head office at Warangal in Telangana, was
operational in 21 districts of Telangana and 7 districts of Andhra Pradesh. From January 1, 2025, APGVB was bifurcated
with the branches in Telangana merged with Telangana Grameena Bank. Till FY 2023-24, the data of APGVB was included as
a part of Telangana in the above table and post bifurcation in FY 2024-25, the data of APGVB is included as a part of Andhra
Pradesh.
2. J & K Grameen Bank, with head office at Jammu, has 4 branches in union territory of Ladakh. The data of the bank has
been shown under Jammu & Kashmir.
Source: NABARD.
165Report on Trend and Progress of Banking in India 2024-25
Appendix Table IV.15: RRBs - PSL Target and Achievement - 2024-25
Sector/Sub Sector Target Achievement RRBs not Meeting Target/Sub-target
(per cent) (per cent)
1 2 3 4
Overall Priority Sector 75.0 88.2 -
Agriculture 18.0 31.9 -
Small and Marginal Farmers 10.0 18.3 -
Non-Corporate Farmers 13.78 41.3 Arunachal Pradesh Rural Bank (12.12%)
Micro Enterprises 7.5 22.6 -
Weaker Sections 15.0 34.7 -
-: Nil.
Notes: 1. Achievement for FY 2024-25 is computed as a percentage of Adjusted Net Bank Credit (ANBC) as a simple average of all
quarters as per the Reserve Bank’s Master Directions on PSL.
2. ANBC is as on corresponding date of the previous year.
3. Achievement under different categories has been arrived upon after factoring in PSLCs issued/purchased.
4. While computing ANBC, outstanding PSLCs (PSLC purchased less PSLC issued) have been added to net bank credit.
Source: NABARD.
166APPENDIX TABLE
Appendix Table V.1: Indicators of Financial Performance: Scheduled UCBs (Continued)
(As per cent to total assets)
Sr. Bank Name Interest Income Operating Profit Net Profit after Taxes
No.
2023-24 2024-25 2023-24 2024-25 2023-24 2024-25
1 2 3 4 5 6 7 8
1 Abhyudaya Co-op. Bank Ltd., Mumbai 6.6 6.0 0.5 0.7 -1.9 0.0
2 Ahmedabad Mercantile Co-op. Bank Ltd. 6.9 7.2 2.2 1.9 1.5 1.2
3 Akola Urban Co-op. Bank Ltd. 6.8 7.0 1.2 1.2 0.8 0.7
4 Amanath Co-op. Bank Ltd., Bangalore 0.6 1.0 0.2 0.0 0.2 -0.2
5 Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., Hyderabad 8.0 8.2 1.7 2.0 1.9 2.2
6 Apna Sahakari Bank Ltd. 5.5 6.1 0.2 0.5 -1.3 -0.5
7 Bassein Catholic Co-op. Bank Ltd. 6.8 6.7 1.5 1.3 1.1 1.0
8 Bharati Sahakari Bank Ltd. (Poona) 6.5 6.7 1.8 1.1 1.0 0.7
9 Bombay Mercantile Co-op. Bank Ltd. 4.7 4.9 0.9 1.1 0.2 0.1
10 Citizen Credit Co-op. Bank Ltd. Mumbai 7.1 7.0 1.3 1.0 0.6 0.6
11 Cosmos Co-operative Bank Ltd. Pune 7.0 6.9 1.9 1.3 1.6 0.6
12 Dombivali Nagari Sahakari Bank Ltd. 6.1 6.6 1.8 1.7 0.5 0.8
13 Goa Urban Co-op. Bank Ltd. 7.1 7.1 1.2 1.2 0.9 0.9
14 GP Parsik Sahakari Bank Ltd., Kalwa, Thane 6.9 7.0 1.7 1.5 1.0 1.1
15 Greater Bombay Co-op. Bank Ltd. 6.8 7.2 0.7 0.5 0.2 0.1
16 GS Mahanagar Co-operative Bank Ltd., Mumbai 7.4 7.2 1.4 0.6 1.0 0.4
17 Indian Mercantile Co-op. Bank Ltd., Lucknow 4.2 3.8 1.0 0.8 0.9 1.1
18 Jalgaon Janata Sahakari Bank Ltd. 7.3 7.1 1.4 1.0 0.9 0.6
19 Jalgaon People’s Co-op. Bank Ltd. 6.8 6.8 1.5 1.5 0.1 0.5
20 Janakalyan Sahakari Bank Ltd. (Bombay) 6.9 7.2 0.8 -0.7 0.3 0.5
21 Janalaxmi Co-op. Bank Ltd. (Nasik) 4.8 4.1 0.5 0.1 0.5 0.1
22 Janata Sahakari Bank Ltd. (Poona) 6.4 6.8 1.6 1.1 0.4 0.6
23 Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd. 7.2 6.9 1.7 1.8 0.4 0.5
24 Karad Urban Co-op. Bank Ltd. 6.8 7.1 1.2 1.0 0.6 0.6
25 Khamgaon Urban Co-op. Bank Ltd. 6.6 6.4 1.9 1.2 0.6 0.6
26 Mehsana Urban Co-operative Bank Ltd. 7.2 7.4 2.2 2.5 1.1 0.3
27 Nagpur Nagarik Sahakari Bank Ltd. 7.0 7.0 1.3 1.5 0.4 0.7
28 Nasik Merchants’ Co-op. Bank Ltd. 7.4 7.3 1.8 1.9 1.5 1.4
29 New India Co-op. Bank Ltd. 6.4 6.9 0.1 -0.1 -0.8 -6.2
30 NKGSB Co-op. Bank Ltd. 6.6 6.9 0.5 0.7 0.2 0.3
31 Nutan Nagrik Sah. Bank Ltd. (Ahmedabad) 6.8 7.2 1.0 1.2 0.6 0.7
32 Pravara Sahakari Bank Ltd. 7.8 8.2 1.8 2.0 0.6 0.6
33 Rajaram Bapu Sahakari Bank Ltd. 7.1 7.6 1.6 1.7 0.5 0.5
34 Rajkot Nagrik Sahakari Bank Ltd. 7.3 7.5 1.8 1.9 1.2 1.4
35 Sangli Urban Co-op. Bank Ltd. 7.2 7.2 1.7 1.4 1.7 1.0
36 Saraswat Co-operative Bank Ltd. 6.1 6.2 0.9 0.8 0.8 0.7
37 SBPP Co-operative Bank Ltd. 6.4 6.2 2.3 1.9 1.7 1.6
38 Shikshak Sahakari Bank Ltd., Nagpur 6.6 6.8 2.6 1.3 1.8 0.6
39 Sholapur Janata Sahakari Bank Ltd. 6.8 7.1 1.5 1.6 1.2 1.0
40 Surat People’s Co-op. Bank Ltd. 7.5 7.9 2.2 2.0 1.5 1.2
41 SVC Co-operative Bank Ltd. 7.1 7.1 1.4 1.3 0.9 0.9
42 Thane Bharat Sahakari Bank Ltd., Thane 7.4 7.3 0.9 0.9 0.4 0.5
43 The Akola Janata Commercial Co-operative Bank Ltd. 7.0 6.7 1.9 1.4 1.3 0.9
44 The Bharat Co-operative Bank (Mumbai) Ltd. 6.8 7.1 1.0 1.1 0.1 0.3
45 The Kalupur Comm. Co-op. Bank Ltd. 6.7 6.7 2.4 2.2 1.5 1.3
46 The Kalyan Janata Sah. Bank Ltd., Kalyan 7.3 7.6 0.9 0.9 0.4 0.3
47 TJSB Sahakari Bank Ltd., Thane 7.1 7.0 1.6 1.4 1.2 1.0
48 Vasai Vikas Sahakari Bank Ltd. 6.7 6.6 1.3 1.2 0.3 0.3
49 Zoroastrian Co-operative Bank Ltd. 7.1 7.1 0.4 0.4 0.2 0.3
Note: Data for 2024-25 are provisional.
Source: Off-site returns, RBI.
167Report on Trend and Progress of Banking in India 2024-25
Appendix Table V.1: Indicators of Financial Performance: Scheduled UCBs (Concluded)
(As per cent to total assets)
Sr. Bank Name Interest Expended Non-Interest Expenses Provisions and Contingencies
No.
2023-24 2024-25 2023-24 2024-25 2023-24 2024-25
1 2 9 10 11 12 13 14
1 Abhyudaya Co-op. Bank Ltd., Mumbai 4.1 3.9 2.8 2.4 3.4 0.4
2 Ahmedabad Mercantile Co-op. Bank Ltd. 3.8 4.2 1.4 1.4 0.2 0.7
3 Akola Urban Co-op. Bank Ltd. 3.8 4.1 3.0 2.8 0.1 0.2
4 Amanath Co-op. Bank Ltd., Bangalore 0.2 0.2 0.5 1.0 0.0 0.2
5 Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., 4.4 4.1 2.2 2.5 -0.9 -0.9
Hyderabad
6 Apna Sahakari Bank Ltd. 4.0 4.1 2.4 2.4 1.8 1.2
7 Bassein Catholic Co-op. Bank Ltd. 4.1 4.2 1.3 1.5 0.1 0.0
8 Bharati Sahakari Bank Ltd. (Poona) 3.1 3.8 1.7 2.2 0.5 0.2
9 Bombay Mercantile Co-op. Bank Ltd. 1.8 1.8 3.1 3.0 0.8 1.0
10 Citizen Credit Co-op. Bank Ltd. Mumbai 3.9 4.3 2.3 2.4 0.5 0.3
11 Cosmos Co-operative Bank Ltd. Pune 4.1 4.4 3.2 3.1 0.0 0.6
12 Dombivali Nagari Sahakari Bank Ltd. 3.2 3.9 2.8 2.9 1.1 0.5
13 Goa Urban Co-op. Bank Ltd. 3.9 4.4 2.3 2.1 0.0 0.1
14 GP Parsik Sahakari Bank Ltd., Kalwa, Thane 3.2 3.5 2.6 2.6 0.5 0.2
15 Greater Bombay Co-op. Bank Ltd. 4.1 4.6 4.0 4.2 0.3 0.3
16 GS Mahanagar Co-operative Bank Ltd., Mumbai 3.8 4.3 3.0 2.9 0.1 0.1
17 Indian Mercantile Coop.Bank Ltd., Lucknow 1.6 1.5 2.3 2.3 -0.5 -0.6
18 Jalgaon Janata Sahakari Bank Ltd. 4.2 4.2 2.4 2.5 0.3 0.2
19 Jalgaon People’s Co-op. Bank Ltd. 4.0 4.1 2.4 2.5 1.4 0.9
20 Janakalyan Sahakari Bank Ltd. (Bombay) 3.5 3.8 3.3 4.8 0.6 -1.7
21 Janalaxmi Co-op. Bank Ltd. (Nasik) 2.3 2.4 3.4 3.2 0.0 0.0
22 Janata Sahakari Bank Ltd. (Poona) 4.1 4.5 2.3 2.5 1.1 0.3
23 Kallappanna Awade Ichalkaranji Janata Sahakari Bank Ltd. 4.4 4.3 1.6 1.4 0.9 1.0
24 Karad Urban Co-op. Bank Ltd. 4.1 4.7 2.2 2.3 0.4 0.2
25 Khamgaon Urban Co-op. Bank Ltd. 3.2 3.4 2.3 2.7 1.0 0.6
26 Mehsana Urban Co-operative Bank Ltd. 4.3 4.7 1.2 1.3 0.6 1.8
27 Nagpur Nagarik Sahakari Bank Ltd. 3.7 4.3 2.8 2.0 0.9 0.5
28 Nasik Merchants’ Co-op. Bank Ltd. 4.2 4.3 3.1 2.5 -0.2 0.4
29 New India Co-op. Bank Ltd. 4.5 5.1 2.6 3.0 0.7 6.0
30 NKGSB Co-op. Bank Ltd. 4.3 4.7 2.3 2.2 0.2 0.3
31 Nutan Nagrik Sah. Bank Ltd. (Ahmedabad) 5.0 5.2 1.6 1.5 0.2 0.3
32 Pravara Sahakari Bank Ltd. 4.7 4.9 1.8 1.8 0.9 1.2
33 Rajaram Bapu Sahakari Bank Ltd. 4.7 5.0 1.4 1.4 0.9 1.0
34 Rajkot Nagrik Sahakari Bank Ltd. 4.2 4.6 1.4 1.4 0.2 0.2
35 Sangli Urban Co-op. Bank Ltd. 4.8 5.1 2.2 2.0 0.0 0.5
36 Saraswat Co-operative Bank Ltd. 3.9 4.3 2.1 2.0 -0.2 -0.2
37 SBPP Co-operative Bank Ltd. 3.1 3.3 1.7 1.7 0.1 -0.2
38 Shikshak Sahakari Bank Ltd., Nagpur 3.5 3.7 2.7 2.8 0.3 0.5
39 Sholapur Janata Sahakari Bank Ltd. 3.8 4.2 2.1 2.2 0.1 0.4
40 Surat People’s Co-op. Bank Ltd. 4.8 5.1 1.1 1.3 0.3 0.3
41 SVC Co-operative Bank Ltd. 4.2 4.5 2.3 2.3 0.2 0.2
42 Thane Bharat Sahakari Bank Ltd., Thane 4.1 3.9 3.7 3.6 0.4 0.2
43 The Akola Janata Commercial Co-operative Bank Ltd. 3.5 3.7 2.5 2.5 0.2 0.2
44 The Bharat Co-operative Bank (Mumbai) Ltd. 4.4 4.6 2.0 1.9 0.8 0.8
45 The Kalupur Comm. Co-op. Bank Ltd. 3.7 4.0 1.1 1.1 0.4 0.4
46 The Kalyan Janata Sah. Bank Ltd., Kalyan 4.2 4.5 2.7 3.2 0.4 0.5
47 TJSB Sahakari Bank Ltd., Thane 4.0 4.1 2.0 2.2 0.0 0.1
48 Vasai Vikas Sahakari Bank Ltd. 4.1 4.1 2.0 2.0 0.8 0.7
49 Zoroastrian Co-operative Bank Ltd. 3.9 4.3 3.0 2.7 0.1 0.3
Note: Data for 2024-25 are provisional.
Source: Off-site returns, RBI.
168APPENDIX TABLE
Appendix Table V.2: Select Financial Parameters: Scheduled UCBs
(At end-March 2025)
(Per cent)
Sr. Bank Name Average Average Net Net Non- Return CRAR Business Profit
No. Cost of Yield on Interest Interest Interest on Assets per per
Deposits Advances Income Income to Income to (RoA) Employee Employee
to Total Working Working (` crore) (` crore)
Assets Funds Funds
(Spread)
1 2 3 4 5 6 7 8 9 10 11
1 Abhyudaya Co-op. Bank Ltd., Mumbai 5.1 8.8 2.1 2.1 1.0 0.0 3.6 6.1 0.0
2 Ahmedabad Mercantile Co-op. Bank Ltd. 6.0 9.0 3.1 3.0 0.3 1.3 32.2 13.1 0.1
3 Akola Urban Co-op. Bank Ltd. 5.1 10.1 3.1 3.0 1.2 0.8 15.6 5.6 0.0
4 Amanath Co-op. Bank Ltd., Bangalore 1.4 2.7 3.8 3.8 0.5 -0.8 32.1 1.6 0.0
5 Andhra Pradesh Mahesh Co-operative Urban Bank Ltd., 5.5 12.6 4.0 4.0 0.4 2.2 44.7 6.4 0.1
Hyderabad
6 Apna Sahakari Bank Ltd. 5.0 8.4 1.9 2.1 0.9 -0.5 4.7 7.5 0.0
7 Bassein Catholic Co-op. Bank Ltd. 5.7 8.9 2.7 2.6 0.3 1.1 24.6 18.3 0.2
8 Bharati Sahakari Bank Ltd. (Poona) 4.5 8.6 3.0 3.1 0.3 0.7 21.1 10.1 0.1
9 Bombay Mercantile Co-op. Bank Ltd. 3.1 9.6 3.2 4.2 1.4 0.1 13.0 4.4 0.0
10 Citizen Credit Co-op. Bank Ltd. Mumbai 5.2 8.8 2.6 2.8 0.7 0.5 21.3 9.4 0.0
11 Cosmos Co-operative Bank Ltd. Pune 5.8 9.6 2.8 2.7 1.9 0.7 15.1 12.3 0.1
12 Dombivali Nagari Sahakari Bank Ltd. 5.0 9.6 3.0 3.0 2.1 0.9 16.9 8.5 0.1
13 Goa Urban Co-op. Bank Ltd. 5.8 9.4 2.9 2.8 0.7 0.9 20.9 6.0 0.0
14 GP Parsik Sahakari Bank Ltd., Kalwa, Thane 4.2 8.7 3.7 3.6 0.7 1.1 19.7 7.5 0.1
15 Greater Bombay Co-op. Bank Ltd. 5.1 9.0 2.7 2.8 2.1 0.1 19.2 9.5 0.0
16 GS Mahanagar Co-operative Bank Ltd., Mumbai 5.3 9.6 2.9 2.9 0.6 0.4 19.2 6.5 0.0
17 Indian Mercantile Co-Op. Bank Ltd., Lucknow 3.0 3.7 2.5 3.0 1.1 1.2 92.3 1.7 0.0
18 Jalgaon Janata Sahakari Bank Ltd. 5.3 10.0 3.2 3.1 0.5 0.7 15.4 7.7 0.0
19 Jalgaon People’s Co-op. Bank Ltd. 5.0 9.4 2.9 2.8 1.4 0.5 15.2 7.9 0.0
20 Janakalyan Sahakari Bank Ltd. (Bombay) 4.7 10.1 3.6 3.6 0.8 0.5 15.3 8.5 0.0
21 Janalaxmi Co-op. Bank Ltd. (Nasik) 5.1 9.1 1.6 2.6 2.4 0.1 21.4 1.7 0.0
22 Janata Sahakari Bank Ltd. (Poona) 5.4 9.1 2.6 2.4 1.3 0.7 14.8 13.9 0.1
23 Kallappanna Awade Ichalkaranji Janata Sahakari 7.6 10.7 3.0 2.7 0.7 0.5 13.8 8.0 0.0
Bank Ltd.
24 Karad Urban Co-op. Bank Ltd. 6.0 9.5 2.7 2.6 0.9 0.7 15.3 8.0 0.0
25 Khamgaon Urban Co-op. Bank Ltd. 4.6 9.7 3.1 3.1 1.0 0.6 22.9 6.0 0.0
26 Mehsana Urban Co-operative Bank Ltd. 6.1 9.4 2.8 2.7 1.2 0.3 17.0 24.4 0.1
27 Nagpur Nagarik Sahakari Bank Ltd. 5.2 9.0 2.9 2.9 0.8 0.7 14.6 9.3 0.0
28 Nasik Merchants’ Co-op. Bank Ltd. 5.3 9.1 3.3 3.1 1.4 1.5 30.5 6.1 0.1
29 New India Co-op. Bank Ltd. 5.2 9.9 1.7 1.8 1.1 -5.6 -4.7 11.2 -0.5
30 NKGSB Co-op. Bank Ltd. 5.9 9.3 2.3 2.3 0.7 0.3 13.2 15.5 0.0
31 Nutan Nagrik Sah. Bank Ltd. (Ahmedabad) 6.2 9.2 2.1 2.0 0.7 0.7 15.4 15.9 0.1
32 Pravara Sahakari Bank Ltd. 5.8 9.9 3.5 3.4 0.4 0.6 13.6 7.6 0.0
33 Rajaram Bapu Sahakari Bank Ltd. 6.6 10.1 2.9 2.9 0.6 0.6 14.9 10.6 0.0
34 Rajkot Nagrik Sahakari Bank Ltd. 5.7 9.5 3.1 3.0 0.4 1.4 18.7 9.9 0.1
35 Sangli Urban Co-op. Bank Ltd. 6.2 10.1 2.2 2.3 1.4 1.0 14.9 6.6 0.0
36 Saraswat Co-operative Bank Ltd. 5.7 9.3 2.4 2.2 0.9 0.9 17.4 16.9 0.1
37 SBPP Co-operative Bank Ltd 5.0 9.3 3.5 3.2 0.7 1.9 23.8 11.8 0.2
38 Shikshak Sahakari Bank Ltd., Nagpur 5.1 10.1 3.1 3.5 1.1 0.6 16.2 4.8 0.0
39 Sholapur Janata Sahakari Bank Ltd. 5.8 10.7 3.1 3.3 0.9 1.0 18.6 7.7 0.1
40 Surat People’s Co-op. Bank Ltd. 6.1 9.4 2.9 2.9 0.4 1.3 16.4 28.4 0.2
41 SVC Co-operative Bank Ltd. 5.6 9.7 3.1 3.1 1.2 1.0 14.8 15.9 0.1
42 Thane Bharat Sahakari Bank Ltd., Thane 4.5 9.7 3.7 3.6 1.1 0.5 13.6 8.6 0.0
43 The Akola Janata Commercial Co-operative Bank Ltd. 5.1 10.6 3.4 3.2 1.0 1.0 28.7 6.1 0.0
44 The Bharat Co-operative Bank (Mumbai) Ltd. 5.6 9.5 2.5 2.5 0.6 0.3 14.1 12.9 0.0
45 The Kalupur Comm. Co-op. Bank Ltd. 5.6 8.9 3.1 3.0 0.5 1.5 20.2 20.9 0.2
46 The Kalyan Janata Sah. Bank Ltd., Kalyan 5.0 9.9 3.1 3.3 1.0 0.3 12.6 9.1 0.0
47 TJSB Sahakari Bank Ltd., Thane 5.3 9.5 3.3 3.1 0.7 1.1 17.5 13.6 0.1
48 Vasai Vikas Sahakari Bank Ltd. 5.0 8.4 2.6 2.6 0.7 0.4 18.3 8.9 0.0
49 Zoroastrian Co-operative Bank Ltd. 5.2 8.7 2.8 2.8 0.4 0.3 19.7 8.3 0.0
Note: Data are provisional.
Source: Off-site returns, RBI.
169Report on Trend and Progress of Banking in India 2024-25
Appendix Table V.3: Salient Indicators of Financial Health of State Co-operative Banks
(At end-March)
(Amount in ` lakh)
Sr. Region/State/UT Amount of Profit/Loss NPAs as Percentage of Recovery to Demand
No. Loans Outstanding Ratio (per cent)*
2023-24 2024-25P 31-Mar-24 31-Mar-25 30-Jun-23 30-Jun-24
1 2 3 4 5 6 7 8
Northern Region 31,052 35,871 2.2 2.1 97.6 97.2
1 Chandigarh 1,174 1,767 2.4 2.4 83.9 86.1
2 Delhi 2,123 2,178 0.7 0.4 98.1 98.3
3 Haryana 6,185 8,289 - 0.1 100.0 100.0
4 Himachal Pradesh 11,876 14,764 3.9 2.9 71.9 66.6
5 Jammu & Kashmir -1,489 -2,059 55.5 56.3 63.0 60.9
6 Punjab 3,561 3,110 0.9 1.2 98.4 99.4
7 Rajasthan 7,621 7,822 0.2 0.3 99.8 99.0
North-Eastern Region 10,148 11,181 9.2 8.9 80.3 57.8
8 Arunachal Pradesh -2,057 -4,283 39.9 27.1 15.8 25.4
9 Assam 1,401 2,918 9.2 9.9 66.1 65.8
10 Manipur 401 256 18.1 20.8 64.6 31.6
11 Meghalaya 1,670 1,832 8.0 7.3 31.4 58.0
12 Mizoram 4,246 4,577 2.5 2.7 84.8 88.8
13 Nagaland 858 1,236 14.2 13.3 59.7 55.6
14 Sikkim 834 989 3.5 3.5 59.5 26.3
15 Tripura 2,795 3,656 7.6 8.3 93.7 74.5
Eastern Region 54,449 52,210 3.9 3.5 91.3 92.2
16 Andaman & Nicobar Islands 746 746 25.8 25.8 63.4 71.1
17 Bihar 6,764 7,818 3.1 2.7 17.3 14.4
18 Jharkhand 6,669 3,593 9.4 9.8 55.0 56.1
19 Odisha 21,589 17,639 1.1 0.9 98.7 99.0
20 West Bengal 18,682 22,414 4.8 4.7 89.2 88.5
Central Region 23,673 28,649 3.8 4.3 92.7 91.0
21 Chhattisgarh 3,683 3,899 2.0 1.7 97.2 93.1
22 Madhya Pradesh 11,154 13,905 5.1 6.4 86.0 86.0
23 Uttar Pradesh 7,287 10,024 3.1 2.7 98.1 98.4
24 Uttarakhand 1,549 820 4.1 6.1 97.6 93.9
Western Region 80,832 76,625 7.2 7.0 77.7 88.5
25 Dadra and Nagar Haveli and Daman and Diu 970 676 4.4 19.6 68.1 55.1
26 Goa 482 1,440 4.2 5.2 91.7 88.6
27 Gujarat 10,692 9,351 0.7 0.3 96.1 96.9
28 Maharashtra 68,688 65,158 9.2 8.7 73.9 87.6
Southern Region 68,990 56,400 5.1 5.0 94.6 82.3
29 Andhra Pradesh 18,980 21,713 0.5 0.8 97.9 99.2
30 Karnataka 6,500 6,700 4.6 5.3 97.6 97.7
31 Kerala 24,781 1,870 11.2 11.6 73.3 65.5
32 Puducherry 60 464 11.6 11.5 71.6 75.5
33 Tamil Nadu 12,129 16,529 2.9 1.7 99.4 91.0
34 Telangana 6,540 9,124 0.1 0.1 98.8 98.9
All India 269,144 260,936 4.9 4.8 92.4 87.5
P: Provisional.
-: Nil/negligible.
*: Recovery for the financial year is as on 30th June.
Note: Components may not add up to the exact total due to rounding off.
Source: NABARD.
170APPENDIX TABLE
Appendix Table V.4: Salient Indicators of Financial Health of District Central Co-operative Banks
(At end-March)
(Amount in ` lakh)
Sr. Region/State/UT 2023-24 2024-25P 2024 2025P
No.
No. of Profit Loss No. of Profit Loss NPA to Recovery NPA to Recovery
DCCBs No. of Amount No of Amount DCCBs No. of Amount No of Amount Loans to Loans to
DCCBs DCCBs DCCBs DCCBs Ratio Demand Ratio Demand
(per cent) Ratio (per cent) Ratio
(per cent)* (per cent)*
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Northern region 73 65 29,841 8 15,330 73 49 35,208 24 36,842 8.5 73.6 8.3 72.4
1 Haryana 19 19 7,122 - - 19 18 9,234 1 19 5.8 60.2 6.7 61.2
2 Himachal Pradesh 2 2 8,399 - - 2 2 13,789 - - 21.0 70.5 17.2 69.9
3 Jammu & Kashmir 3 2 443 1 639 3 2 269 1 690 20.4 35.4 24.7 42.9
4 Punjab 20 14 7,255 6 11,410 20 10 6,965 10 11,163 10.7 75.9 10.5 73.4
5 Rajasthan 29 28 6,622 1 3,282 29 17 4,952 12 24,970 5.2 83.7 5.0 80.9
Eastern region 58 52 28,422 6 9,150 58 51 27,369 7 11,286 8.8 76.6 8.5 78.0
6 Bihar 23 19 2,558 4 3,228 23 18 3,375 5 9,870 12.2 51.8 9.6 52.5
7 Jharkhand 1 1 146 - - 1 1 99 - - 28.1 66.6 16.8 64.7
8 Odisha 17 17 11,946 - - 17 17 10,277 - - 7.3 78.2 7.2 80.7
9 West Bengal 17 15 13,772 2 5,922 17 15 13,619 2 1,416 10.1 79.0 10.4 76.3
Central region 104 89 62,991 15 63,188 104 94 72,981 10 76,221 15.7 66.4 14.9 68.0
10 Chhattisgarh 6 6 19,635 - - 6 6 24,989 - - 9.7 78.7 10.1 79.5
11 Madhya Pradesh 38 29 22,174 9 59,041 38 28 17,833 10 76,221 22.7 57.9 21.8 59.6
12 Uttar Pradesh 50 44 11,446 6 4,147 50 50 18,564 - - 6.3 79.3 5.8 81.2
13 Uttarakhand 10 10 9,736 - - 10 10 11,595 - - 7.6 73.3 8.0 67.5
Western region 49 46 129,124 3 5,585 49 45 143,109 4 5,477 10.3 75.2 10.3 73.6
14 Gujarat 18 18 44,729 - - 18 18 51,873 - - 3.0 94.4 2.3 94.5
15 Maharashtra 31 28 84,395 3 5,585 31 27 91,236 4 5,477 13.2 66.0 13.7 62.7
Southern region 67 60 79,359 7 47,093 67 62 88,319 5 29,513 5.8 88.8 5.7 87.3
16 Andhra Pradesh 13 11 13,126 2 30,855 13 12 16,457 1 5,905 4.8 88.1 6.2 84.2
17 Karnataka 21 18 26,726 3 12,123 21 19 33,463 2 9,214 7.2 91.8 7.1 91.9
18 Kerala 1 - - 1 3,869 1 - - 1 10,471 15.4 66.1 16.0 68.0
19 Tamil Nadu 23 23 27,200 - - 23 23 26,815 - - 5.5 88.6 4.5 86.5
20 Telangana 9 8 12,307 1 246 9 8 11,584 1 3,923 3.2 84.7 2.5 86.2
All India 351 312 329,737 39 140,346 351 301 366,986 50 159,339 8.9 76.8 8.7 76.4
P: Provisional.
-: Nil/negligible.
*: Recovery for the financial year is as on 30th June.
Note: Components may not add up to the exact total due to rounding off.
Source: NABARD.
171Report on Trend and Progress of Banking in India 2024-25
Appendix Table V.5: Details of Members and Borrowers of Primary Agricultural Credit Societies
(Numbers in thousands)
All India Members Borrowers
2023 2024 2023 2024
1 2 3 4 5
Scheduled Castes 17,759 17,773 5,420 5,119
Scheduled Tribes 19,254 22,965 3,209 3,276
Small Farmers 73,057 72,317 28,189 28,571
Rural Artisans 7,298 6,942 1,273 1,201
Others and Marginal Farmers 43,011 43,667 11,137 11,331
Source: NAFSCOB.
172APPENDIX TABLE
Appendix Table V.6: Primary Agricultural Credit Societies
(Amount in ` crore)
Item At end-March Percentage Variation
2023 2024 2022-23 2023-24
1 2 3 4 5
Liabilities
1. Total Resources (2+3+4) 4,47,134 4,90,941 14.2 9.8
2. Owned Funds (a+b) 48,566 59,478 13.6 22.5
a. Paid-up Capital 22,191 30,689 12.1 38.3
of which Government Contribution 889 922 2.7 3.7
b. Total Reserves 26,375 28,789 14.9 9.2
3. Deposits 1,97,239 2,03,532 11.8 3.2
4. Borrowings 2,01,329 2,27,931 16.8 13.2
5. Working Capital 4,09,377 4,29,103 10.7 4.8
Assets
1. Total Loans Outstanding (a+b) 1,88,842 2,03,212 18.2 7.6
a. Short-term 1,54,650 1,63,060 19.7 5.4
b. Medium-term 34,192 40,152 12.0 17.4
Notes: 1. Y-o-y variations could be slightly different because absolute numbers have been rounded off to ` crore.
2. Components may not add up to the exact total due to rounding off.
Source: NAFSCOB.
173Report on Trend and Progress of Banking in India 2024-25
Appendix Table V.7: Select Indicators of Primary Agricultural Credit Societies - State-wise (Continued)
(At end-March, 2024)
(Amount in ` lakh)
Sr. State Number of Deposits Working Loans and Advances Societies in Profit
No. PACS Capital Outstanding
Agriculture Non- Number Amount
Agriculture
1 2 3 4 5 6 7 8 9
Northern region 15,173 18,57,293 55,12,813 26,45,050 99,583 10,005 57,031
1 Chandigarh* 17 - 5 0 - 13 0
2 Haryana 786 47,636 12,69,731 5,96,454 33,150 28 38
3 Himachal Pradesh 2,226 7,50,490 8,90,460 87,376 34,852 1,850 4,237
4 Jammu & Kashmir 658 309 3,675 1,983 361 419 80
5 Punjab* 3,998 7,72,226 13,28,203 7,12,988 22,050 2,062 22,908
6 Rajasthan 7,488 2,86,632 20,20,738 12,46,248 9,169 5,633 29,768
North-Eastern region 10,091 1,07,591 1,67,897 38,122 32,127 1,340 11,415
7 Arunachal Pradesh 35 N.A. 4,644 - - 15 24
8 Assam* 766 - 11,123 575 20 309 7,639
9 Manipur 431 8 1,211 11 - 360 95
10 Meghalaya 707 5,622 12,856 5,391 56 346 2,522
11 Mizoram 96 4,214 423 540 170 60 1,020
12 Nagaland* 7,601 97,313 1,17,058 30,245 31,586 N.A. N.A.
13 Sikkim 187 N.A. 119 1,001 75 125 81
14 Tripura 268 433 20,464 360 220 125 34
Eastern region 18,667 8,10,048 17,89,822 10,21,953 44,204 4,377 8,987
15 Andaman & Nicobar Islands 59 110 1,736 1,872 809 16 32
16 Bihar* 8,463 17,533 50,816 - - 1,180 604
17 Jharkhand N.A. N.A. N.A. N.A. N.A. N.A. N.A.
18 Odisha 2,737 5,80,816 12,29,964 8,69,457 12,811 802 4,973
19 West Bengal 7,408 2,11,589 5,07,306 1,50,624 30,584 2,379 3,378
Central region 16,000 2,65,565 19,62,371 7,19,278 59,049 8,372 52,711
20 Chhattisgarh 1,924 28,098 8,28,093 1,73,225 1,780 1,129 24,179
21 Madhya Pradesh* 4,457 81,731 6,45,546 3,39,959 11,892 2,153 13,124
22 Uttarakhand 690 1,48,916 3,62,805 1,26,063 45,376 554 13,635
23 Uttar Pradesh* 8,929 6,820 1,25,927 80,031 - 4,536 1,774
Western region 31,625 16,66,414 65,57,643 44,49,058 7,14,389 15,303 31,260
24 Goa 109 12,202 19,848 1,048 5,535 52 419
25 Gujarat 9,622 75,318 19,44,091 18,06,518 92,982 6,916 18,956
26 Maharashtra 21,894 15,78,895 45,93,705 26,41,493 6,15,872 8,335 11,885
Southern region 16,085 1,56,46,292 2,69,19,716 69,25,629 27,31,434 9,841 99,517
27 Andhra Pradesh 2,042 2,81,495 32,83,110 15,22,356 - 1,062 33,351
28 Telangana* 885 51,009 7,73,396 5,71,155 51,609 619 11,623
29 Karnataka 6,954 19,32,933 53,02,566 24,03,574 10,25,724 4,268 17,102
30 Kerala* 1,620 1,21,69,710 1,35,32,893 4,46,114 2,28,188 927 14,150
31 Puducherry 53 24,058 31,953 45 23,801 16 384
32 Tamil Nadu 4,531 11,87,087 39,95,797 19,82,384 14,02,112 2,949 22,907
All India 1,07,641 2,03,53,203 4,29,10,262 1,57,99,090 36,80,785 49,238 2,60,922
*: Data relate to previous year.
N.A.: Not Available.
-: Nil/negligible.
Note: Components may not add up to the exact total due to rounding off.
Source: NAFSCOB.
174APPENDIX TABLE
Appendix Table V.7: Select Indicators of Primary Agricultural Credit Societies - State-wise (Concluded)
(At end-March, 2024)
(Amount in ` lakh)
Sr. State Societies in Loss Viable Potentially Dormant Defunct Others
No. viable
Number Amount
1 2 10 11 12 13 14 15 16
Northern Region 4,542 28,877 13,288 1,103 353 242 187
1 Chandigarh* 4 0.31 13 - - 4 -
2 Haryana 758 7,039 786 - - - -
3 Himachal Pradesh 323 1,789 1,070 955 70 63 68
4 Jammu & Kashmir 142 13 550 37 9 46 16
5 Punjab* 1,513 6,619 3,505 111 150 129 103
6 Rajasthan 1,802 13,417 7,364 - 124 - -
North-Eastern Region 1,036 11,252 9,620 224 73 23 151
7 Arunachal Pradesh 18 12 33 0 0 2 0
8 Assam* 419 9,909 709 57 0 0 0
9 Manipur 71 29 198 61 10 11 151
10 Meghalaya 361 1,237 575 69 63 0 0
11 Mizoram 12 3 69 27 0 0 0
12 Nagaland* N.A. N.A. 7,601 0 0 0 0
13 Sikkim 33 18 167 10 0 10 0
14 Tripura 122 44 268 0 0 0 0
Eastern Region 9,890 28,856 14,111 2,768 584 412 792
15 Andaman & Nicobar Island 31 274 46 13 0 0 0
16 Bihar* 3,962 94 8,463 0 0 0 0
17 Jharkhand N.A. N.A. N.A. N.A. N.A. N.A. N.A.
18 Odisha 1,882 27,014 1,649 509 11 1 567
19 West Bengal 4,015 1,473 3,953 2,246 573 411 225
Central Region 4,975 69,854 13,343 2,034 386 167 70
20 Chhattisgarh 746 44,429 1,912 12 0 0 0
21 Madhya Pradesh* 2,129 17,824 3,663 720 4 - 70
22 Uttarakhand 132 7,449 653 33 - 4 -
23 Uttar Pradesh* 1,968 153 7,115 1,269 382 163 -
Western Region 12,824 26,907 24,965 4,176 987 879 618
24 Goa 13 143 79 4 9 17 -
25 Gujarat 1571 13,160 6,082 2,532 268 166 574
26 Maharashtra 11,240 13,604 18,804 1,640 710 696 44
Southern Region 4,395 1,86,692 10,951 3,981 176 111 866
27 Andhra Pradesh 968 97,958 1,321 685 20 2 14
28 Telangana* 196 3,321 652 213 1 - 19
29 Karnataka 1,336 4,031 4,636 1,885 101 79 253
30 Kerala* 658 68,110 1,580 - 15 25 -
31 Puducherry 30 3,480 16 30 2 5 -
32 Tamil Nadu 1,207 9,791 2,746 1,168 37 - 580
All India 37,662 3,52,439 86,278 14,286 2,559 1,834 2,684
*: Data relate to previous year.
N.A.: Not Available.
-: Nil/negligible.
Note: Components may not add up to the exact total due to rounding off.
Source: NAFSCOB.
175Report on Trend and Progress of Banking in India 2024-25
Appendix Table V.8: Liabilities and Assets of State Co-operative Agriculture and
Rural Development Banks
(Amount in ` crore)
Item At end-March Percentage Variation
2023 2024P 2022-23 2023-24
1 2 3 4 5
Liabilities
1. Capital 973 1,007 0.6 3.5
(3.5) (3.5)
2. Reserves 5,571 5,736 5.2 3.0
(20.0) (19.9)
3. Deposits 2,621 2,679 1.4 2.2
(9.4) (9.3)
4. Borrowings 12,559 12,517 -6.3 -0.3
(45.2) (43.4)
5. Other Liabilities 6,071 6,912 3.9 13.9
(21.8) (24.0)
Assets
1. Cash and Bank Balances 253 328 4.7 29.9
(0.9) (1.1)
2. Investments 2,913 2,837 23.6 -2.6
(10.5) (9.8)
3. Loans and Advances 20,770 21,048 -0.4 1.3
(74.7) (73.0)
4. Accumulated Losses 627 1,167 6.8 86.3
(2.3) (4.0)
5. Other Assets 3,231 3,470 -20.4 7.4
(11.6) (12.0)
Total Liabilities/Assets 27,794 28,851 -1.1 3.8
(100.0) (100.0)
P: Provisional.
Notes: 1. Figures in parentheses are proportion to total liabilities/assets (in per cent).
2. Y-o-y variations could be slightly different because absolute numbers have been rounded off to `1 crore in the table.
3. Components may not add up to the exact total due to rounding off.
Source: NABARD.
176APPENDIX TABLE
Appendix Table V.9: Financial Performance of State Co-operative Agriculture and
Rural Development Banks
(Amount in ` crore)
Sr. Item During Percentage Variation
No.
2022-23 2023-24P 2022-23 2023-24
1 2 3 4 5 6
A. Income (i+ii) 3,412 2,462 38.9 -27.9
(100.0) (100.0)
i. Interest Income 2,364 2,321 14.2 -1.8
(69.3) (94.3)
ii. Other Income 1,049 141 170.4 -86.5
(30.7) (5.7)
B. Expenditure (i+ii+iii) 3,004 2,736 26.6 -8.9
(100.0) (100.0)
i. Interest Expended 1,034 1,263 2.5 22.2
(34.4) (46.2)
ii. Provisions and Contingencies 563 718 -8.2 27.3
(18.8) (26.2)
iii. Operating Expenses 1,407 756 87.6 -46.3
(46.8) (27.6)
Of which, Wage Bill 346 364 -11.3 5.2
(11.5) (13.3)
C. Profits
i. Operating Profits 972 443 39.1 -54.4
ii. Net Profits 408 -275
P: Provisional.
Notes: 1. Figures in parentheses are proportion to total liabilities/assets (in per cent).
2. Y-o-y variations could be slightly different because absolute numbers have been rounded off to `1 crore in the table.
3. Components may not add up to the exact total due to rounding off.
Source: NABARD.
177Report on Trend and Progress of Banking in India 2024-25
Appendix Table V.10: Asset Quality of State Co-operative Agriculture and
Rural Development Banks
(Amount in ` crore)
Item As at end-March Percentage Variation
2023 2024P 2022-23 2023-24
1 2 3 4 5
A. Total NPAs (i+ii+iii) 7,571 8,070 0.7 6.6
i. Sub-standard 2,362 2,595 -15.2 9.8
(31.2) (32.2)
ii. Doubtful 5,173 5,441 10.0 5.2
(68.3) (67.4)
iii. Loss 35 34 2.2 -3.5
(0.5) (0.4)
B. Gross NPA Ratio (per cent) 36.5 38.3
C. Recovery to Demand Ratio (per cent) * 44.8 40.8
P: Provisional.
*: Recovery for the financial year is taken as on 30th June.
Notes: 1. Figures in parentheses are proportions to total NPAs.
2. Y-o-y variations could be slightly different because absolute numbers have been rounded off to `1 crore in the table.
3. Components may not add up to the exact total due to rounding off.
Source: NABARD.
178APPENDIX TABLE
Appendix Table V.11: Financial Indicators of State Co-operative Agriculture and
Rural Development Banks - State-wise
(At end-March)
(Amount in ` lakh)
Sr. Region/State/UT Branches Profit / Loss NPAs to Loans Ratio Recovery to Demand
No. (per cent) Ratio (per cent) ^
2024 2023 2024P 2023 2024P 2023 2024P
1 2 3 4 5 6 7 8 9
Northern region 104 16,336 -55,861 62.9 70.9 22.6 13.1
1 Haryana @ - -2,057 -51,830 76.6 88.5 11.0 5.7
2 Himachal Pradesh # 51 -165 -428 38.0 35.8 41.0 35.6
3 Jammu & Kashmir* 51 -1,790 -1,872 55.0 46.2 32.6 30.0
4 Punjab @ - 19,680 420 62.0 70.4 42.2 21.1
5 Rajasthan @ 2 669 -2,150 55.6 61.7 16.7 13.6
North-eastern region 5 16 22 98.3 89.3 12.9 8.4
6 Assam* - - - - - - -
7 Tripura* 5 16 22 98.3 89.3 12.9 8.4
Eastern region 11 700 62 24.7 26.8 34.7 33.4
8 Bihar* - - - - - - -
9 Odisha @ - - - - - - -
10 West Bengal # 11 700 62 24.7 26.8 34.7 33.4
Central region 323 9,808 9,831 81.9 76.2 29.1 27.7
11 Chhattisgarh @ - - - - - - -
12 Madhya Pradesh @ - - - - - - -
13 Uttar Pradesh* 323 9,808 9,831 81.9 76.2 29.1 27.7
Western region 177 6,006 5,433 44.1 29.7 14.4 14.2
14 Gujarat* 177 6,006 5,433 44.1 29.7 14.4 14.2
15 Maharashtra @ - - - - - - -
Southern region 75 7,936 13,023 14.1 16.2 73.9 71.7
16 Karnataka @ 25 4 3,141 38.7 37.6 32.0 26.2
17 Kerala @ 16 3,447 3,506 8.3 11.8 86.5 84.9
18 Puducherry* 1 22 111 8.8 6.0 91.2 92.9
19 Tamil Nadu @ 33 4,464 6,265 11.6 9.6 88.6 90.5
All India 695 40,803 -27,490 36.5 38.3 44.8 40.8
@: Federal structure. #: Mixed structure. *: Unitary structure. -: Not applicable.
^: Recovery for the financial year is taken as on 30th June.
P: Provisional.
Notes: 1. Components may not add up to the exact total due to rounding off.
2. Assam, Bihar, Chhattisgarh, Odisha, Madhya Pradesh and Maharashtra no longer have functional SCARDBs.
Source: NABARD.
179Report on Trend and Progress of Banking in India 2024-25
Appendix Table V.12: Liabilities and Assets of Primary Co-operative Agriculture and
Rural Development Banks
(Amount in ` crore)
Item At end-March Percentage Variation
2023 2024P 2022-23 2023-24
1 2 3 4 5
Liabilities
1. Capital 1,110 1,058 3.1 -4.7
(3.4) (3.2)
2. Reserves 4,518 4,600 2.6 1.8
(13.7) (13.8)
3. Deposits 1,721 1,804 2.8 4.8
(5.2) (5.4)
4. Borrowings 16,949 16,840 -2.0 -0.6
(51.5) (50.5)
5. Other Liabilities 8,585 9,023 -4.8 5.1
(26.1) (27.1)
Assets
1. Cash and Bank Balances 421 429 -24.4 2.0
(1.3) (1.3)
2. Investments 2,387 2,502 3.6 4.8
(7.3) (7.5)
3. Loans and Advances 16,044 15,922 -3.5 -0.8
(48.8) (47.8)
4. Accumulated Losses 6,748 6,708 3.1 -0.6
(20.5) (20.1)
5. Other Assets 7,283 7,763 -2.0 6.6
(22.1) (23.3)
Total Liabilities/Assets 32,883 33,324 -1.7 1.3
(100.0) (100.0)
P: Provisional.
Notes: 1. Figures in parentheses are proportion to total liabilities/assets (in per cent).
2. Y-o-y variations could be slightly different because absolute numbers have been rounded off to `1 crore in the table.
3. Components may not add up to the exact total due to rounding off.
4. Data for financial year 2022-23 are available in respect of 607 of 608 reported PCARDBs and data for financial year
2023-24 are available in respect of 608 of 609 reported PCARDBs.
Source: NABARD.
180APPENDIX TABLE
Appendix Table V.13: Financial Performance of Primary Co-operative Agriculture and
Rural Development Banks
(Amount in ` crore)
Item During Percentage Variation
2022-23 2023-24P 2022-23 2023-24
1 2 3 4 5
A. Income (i+ii) 3,524 3,166 22.5 -10.2
(100.0) (100.0)
i. Interest Income 1,957 2,031 7.3 3.8
(55.5) (64.1)
ii. Other Income 1,567 1,135 48.9 -27.6
(44.5) (35.9)
B. Expenditure (i+ii+iii) 3,293 3,367 -5.0 2.3
(100.0) (100.0)
i. Interest Expended 1,676 1,668 -1.5 -0.5
(50.9) (49.5)
ii. Provisions and Contingencies 1,014 873 -4.9 -13.9
(30.8) (25.9)
iii. Operating Expenses 603 827 -13.7 37.1
(18.3) (24.5)
Of which, Wage Bill 228 230 -53.7 0.6
(6.9) (6.8)
C. Profits
i. Operating Profits 1,246 672 160.7 -46.0
ii. Net Profits 231 -201
P: Provisional.
Notes: 1. Figures in parentheses are proportion to total income/expenditure (in per cent).
2. Y-o-y variations could be slightly different because absolute numbers have been rounded off to `1 crore in the table.
3. Components may not add up to the exact total due to rounding off.
4. Data for financial year 2022-23 are available in respect of 607 of 608 reported PCARDBs and data for financial year
2023-24 are available in respect of 608 of 609 reported PCARDBs.
Source: NABARD.
181Report on Trend and Progress of Banking in India 2024-25
Appendix Table V.14: Asset Quality of Primary Co-operative Agriculture and
Rural Development Banks
(Amount in ` crore)
Item At end-March Percentage Variation
2023 2024P 2022-23 2023-24
1 2 3 4 5
A. Total NPAs (i+ii+iii) 6,371 6,144 -5.9 -3.6
i. Sub-standard 2,552 2,408 -12.8 -5.6
(40.1) (39.2)
ii. Doubtful 3,784 3,635 -0.7 -3.9
(59.4) (59.2)
iii. Loss 36 101 17.9 181.4
(0.6) (1.6)
B. Gross NPA Ratio (per cent) 39.7 38.6
C. Recovery to Demand Ratio (per cent)* 39.1 43.1
P: Provisional.
*: Recovery for the financial year is taken as on 30th June.
Notes: 1. Figures in parentheses are proportions to total NPAs.
2. Y-o-y variations could be slightly different because absolute numbers have been rounded off to `1 crore in the table.
3. Components may not add up to the exact total due to rounding off.
4. Data for financial year 2022-23 are available in respect of 607 of 608 reported PCARDBs and data for financial year
2023-24 are available in respect of 608 of 609 reported PCARDBs.
Source: NABARD.
182APPENDIX TABLE
Appendix Table V.15: Major Financial Indicators of Primary Co-operative Agriculture and
Rural Developments Banks
(Amount in ` lakh)
State 2022-23 2023-24P NPAs to Loans Recovery to
Ratio (per cent) Demand Ratio
Profit Loss Profit Loss (per cent) *
Number Amount Number Amount Number Amount Number Amount 2023 2024P 2023 2024P
1 2 3 4 5 6 7 8 9 10 11 12 13
Northern Region 102 35,310 42 13,611 34 1,781 110 31,432 70.8 71.5 16.5 11.1
Haryana 0 - 19 6,878 0 - 19 16,601 86.5 81.5 12.2 6.4
Himachal Pradesh 0 - 1 164 1 17 0 - 31.8 29.8 53.6 55.3
Punjab 87 34,866 2 97 22 1,487 67 8,543 84.0 89.1 13.5 10.3
Rajasthan 15 444 20 6,472 11 276 24 6,288 35.8 38.5 31.3 20.5
Central Region - - - - - - - - - - - -
Chhattisgarh - - - - - - - - - - - -
Madhya Pradesh - - - - - - - - - - - -
Eastern Region 8 2,630 16 3,896 8 2,083 16 3,826 34.2 33.7 36.2 37.0
Odisha - - - - - - - - - - - -
West Bengal 8 2,630 16 3,896 8 2,083 16 3,826 34.2 33.7 36.2 37.0
Western Region - - - - - - - - - - - -
Maharashtra - - - - - - - - - - - -
Southern Region 242 15,530 197 12,842 303 18,177 137 6,850 29.2 28.1 64.4 73.0
Karnataka 56 1,997 126 8,386 128 10,947 55 2,259 19.9 15.5 58.5 80.1
Kerala 60 9,357 17 3,518 48 5,407 29 3,780 33.6 33.5 63.6 62.6
Tamil Nadu 126 4,176 54 939 127 1,822 53 811 12.5 11.7 80.5 95.6
All India 352 53,470 255 30,349 345 22,040 263 42,108 39.7 38.6 39.1 43.1
P: Provisional.
*: Recovery for the financial year is taken as on 30th June.
-: Not applicable.
Notes: 1. Components may not add up to the exact total due to rounding off.
2. Data for financial year 2022-23 are available in respect of 607 of 608 reported PCARDBs and data for financial year
2023-24 are available in respect of 608 of 609 reported PCARDBs.
Source: NABARD.
183Report on Trend and Progress of Banking in India 2024-25
Appendix Table VI.1: Consolidated Balance Sheet of NBFCs
(` crore)
Items End-March End-March End-March End-September Percentage
Variation
2023 2024 2025 2025 2024-25
1 2 3 4 5 6
1. Share Capital 1,26,078 1,45,110 1,49,415 1,50,740 3.0
2. Reserves & Surplus 8,55,926 10,50,737 12,46,845 13,17,421 18.7
3. Public Deposits 84,975 1,02,959 1,21,178 1,31,730 17.7
4. Total Borrowings (A+B) 29,79,316 34,66,283 41,81,214 44,99,426 20.6
A. Secured Borrowings 17,51,419 20,30,531 24,27,962 26,30,052 19.6
A.1. Debentures 6,22,812 6,69,362 7,84,570 8,90,440 17.2
A.2. Borrowings from Banks 9,07,622 10,76,863 12,39,858 12,91,793 15.1
A.3. Borrowings from FIs 76,426 99,442 1,18,061 1,17,728 18.7
A.4. Interest Accrued 15,246 17,033 16,072 15,935 -5.6
A.5. Others 1,29,314 1,67,831 2,69,401 3,14,157 60.5
B. Un-Secured Borrowings 12,27,897 14,35,753 17,53,252 18,69,374 22.1
B.1. Debentures 4,84,713 5,63,638 6,92,128 7,29,784 22.8
B.2. Borrowings from Banks 2,18,426 2,61,226 3,16,790 3,67,708 21.3
B.3. Borrowings from FIs 13,149 17,715 22,138 27,131 25.0
B.4. Borrowings from Relatives 2,380 2,606 2,675 3,341 2.6
B.5. Inter-Corporate Borrowings 99,564 1,05,415 1,37,537 1,59,401 30.5
B.6. Commercial Papers 83,620 1,05,439 1,35,232 1,56,199 28.3
B.7. Interest Accrued 17,659 21,049 23,360 26,075 11.0
B.8. Others 3,08,386 3,58,665 4,23,392 3,99,735 18.0
5. Current Liabilities & Provisions 3,42,634 3,74,381 4,10,474 4,51,840 9.6
Total Liabilities/ Total Assets 43,88,930 51,39,470 61,09,126 65,51,157 18.9
1. Loans & Advances 34,13,804 40,52,732 48,38,744 52,05,544 19.4
1.1. Secured 23,72,459 30,79,982 36,76,488 39,37,921 19.4
1.2. Un-Secured 10,41,346 9,72,750 11,62,256 12,67,622 19.5
2. Investments 5,33,421 6,66,796 7,84,621 8,18,990 17.7
2.1. Govt. Securities 91,855 1,23,248 1,54,915 1,71,401 25.7
2.2. Equity Shares 2,82,786 3,81,704 4,13,127 3,86,412 8.2
2.3. Preference Shares 7,081 8,609 9,045 9,209 5.1
2.4. Debentures & Bonds 33,169 37,842 57,175 59,525 51.1
2.5. Units of Mutual Funds 66,196 57,142 76,431 1,10,121 33.8
2.6. Commercial Papers 1,177 2,571 3,056 5,583 18.9
2.7. Other Investments 51,158 55,680 70,873 76,739 27.3
3. Cash & Bank Balances 1,72,105 1,73,559 2,30,508 2,41,021 32.8
of which:
3.1. Cash in Hand 6,411 6,627 6,630 24,563 0.0
3.2. Deposits with Banks 1,52,967 1,51,879 2,06,279 1,99,269 35.8
4. Others 2,69,600 2,46,383 2,55,254 2,85,602 3.6
Memo Items
1. Capital Market Exposure (CME) 3,08,043 4,18,225 4,52,137 4,65,880 8.1
of which: Equity Shares 2,02,727 2,85,273 3,03,694 2,94,724 6.5
2. CME as per cent to Total Assets 7.0 8.1 7.4 7.1
3. Leverage Ratio 4.4 4.2 4.2 4.3
- : Not applicable or Not available or Nil
Notes: 1. Data are provisional. Percentage figures are rounded-off.
2. Data for NBFCs (excluding CICs, HFCs and SPDs) falling in upper and middle layers.
3. The data is based on the classification of NBFCs by layers as per the list of NBFCs registered with the RBI. Layer-wise identification of NBFCs
up to March-2025 is based on their position as on December 31, 2024. For September-2025, the same position is considered, except where
there was change in layer of NBFC between January and September 2025.
Source: Supervisory returns, RBI.
184APPENDIX TABLE
Appendix Table VI.2: Consolidated Balance Sheet of NBFC-UL
(` crore)
Items End-March End-March End-March End-September Percentage
Variation
2023 2024 2025 2025 2024-25
1 2 3 4 5 6
1. Share Capital 7,344 9,034 11,364 12,033 25.8
2. Reserves & Surplus 1,91,938 2,45,188 3,20,180 3,74,484 30.6
3. Public Deposits 64,797 83,102 1,00,653 1,10,124 21.1
4. Total Borrowings (A+B) 7,48,506 9,53,405 12,66,934 14,06,062 32.9
A. Secured Borrowings 6,40,877 8,17,360 10,98,280 12,27,822 34.4
A.1. Debentures 2,13,684 2,56,627 3,27,297 4,01,149 27.5
A.2. Borrowings from Banks 3,18,979 4,08,471 5,25,861 5,74,256 28.7
A.3. Borrowings from FIs 30,005 44,041 54,128 53,045 22.9
A.4. Interest Accrued 6,165 8,229 8,014 7,706 -2.6
A.5. Others 72,044 99,992 1,82,980 1,91,667 83.0
B. Un-Secured Borrowings 1,07,630 1,36,045 1,68,654 1,78,240 24.0
B.1. Debentures 11,731 14,817 19,510 19,607 31.7
B.2. Borrowings from Banks 6,218 4,602 6,428 5,553 39.7
B.3. Borrowings from FIs - - 2,405 2,287 -
B.4. Borrowings from Relatives 615 700 523 917 -25.2
B.5. Inter-Corporate Borrowings 21,059 25,589 31,420 30,989 22.8
B.6. Commercial Papers 39,550 54,146 61,305 71,165 13.2
B.7. Interest Accrued 1,889 2,569 1,412 1,036 -45.0
B.8. Others 26,568 33,622 45,651 46,686 35.8
5. Current Liabilities & Provisions 58,463 68,793 82,859 96,157 20.4
Total Liabilities/ Total Assets 10,71,050 13,59,521 17,81,991 19,98,860 31.1
1. Loans & Advances 9,18,302 11,85,621 15,16,011 17,16,579 27.9
1.1. Secured 6,91,720 8,95,934 11,47,665 13,01,275 28.1
1.2. Un-Secured 2,26,582 2,89,688 3,68,346 4,15,304 27.2
2. Investments 75,479 95,189 1,35,253 1,53,493 42.1
2.1. Govt. Securities 37,465 50,634 57,222 62,993 13.0
2.2. Equity Shares 14,195 21,454 31,741 39,631 47.9
2.3. Preference Shares 114 35 153 464 342.1
2.4. Debentures & Bonds 1,608 1,634 11,735 11,947 618.4
2.5. Units of Mutual Funds 10,567 7,116 8,420 8,057 18.3
2.6. Commercial Papers 691 1,005 1,520 2,197 51.3
2.7. Other Investments 10,838 13,312 24,462 28,205 83.8
3. Cash & Bank Balances 46,946 43,228 80,973 65,829 87.3
of which:
3.1. Cash in Hand 673 853 2,219 2,225 160.3
3.2. Deposits with Banks 44,046 38,463 76,460 61,625 98.8
4. Others 30,323 35,483 49,754 62,959 40.2
Memo Items
1. Capital Market Exposure (CME) 41,880 65,650 77,271 90,719 17.7
of which: Equity Shares 4,105 9,929 24,325 25,494 145.0
2. CME as per cent to Total Assets 3.9 4.8 4.3 4.5
3. Leverage Ratio 4.8 4.7 4.6 4.5
- : Not applicable or Not available or Nil
Notes: 1. Data are provisional. Percentage figures are rounded-off.
2. Data for NBFCs (excluding CICs, HFCs and SPDs) falling in upper and middle layers.
3. The data is based on the classification of NBFCs by layers as per the list of NBFCs registered with the RBI. Layer-wise identification of NBFCs
up to March-2025 is based on their position as on December 31, 2024. For September-2025, the same position is considered, except where
there was change in layer of NBFC between January and September 2025.
Source: Supervisory returns, RBI.
185Report on Trend and Progress of Banking in India 2024-25
Appendix Table VI.3: Consolidated Balance Sheet of NBFC-ML
(` crore)
Items End-March End-March End-March End-September Percentage
Variation
2023 2024 2025 2025 2024-25
1 2 3 4 5 6
1. Share Capital 1,18,734 1,36,076 1,38,050 1,38,706 1.5
2. Reserves & Surplus 6,63,988 8,05,549 9,26,665 9,42,937 15.0
3. Public Deposits 20,178 19,858 20,525 21,607 3.4
4. Total Borrowings (A+B) 22,30,810 25,12,878 29,14,280 30,93,364 16.0
A. Secured Borrowings 11,10,542 12,13,171 13,29,682 14,02,230 9.6
A.1. Debentures 4,09,128 4,12,734 4,57,273 4,89,291 10.8
A.2. Borrowings from Banks 5,88,642 6,68,392 7,13,997 7,17,537 6.8
A.3. Borrowings from FIs 46,422 55,401 63,933 64,683 15.4
A.4. Interest Accrued 9,081 8,804 8,058 8,229 -8.5
A.5. Others 57,270 67,839 86,421 1,22,490 27.4
B. Un-Secured Borrowings 11,20,267 12,99,708 15,84,598 16,91,134 21.9
B.1. Debentures 4,72,982 5,48,821 6,72,617 7,10,177 22.6
B.2. Borrowings from Banks 2,12,209 2,56,623 3,10,362 3,62,156 20.9
B.3. Borrowings from FIs 13,149 17,715 19,733 24,844 11.4
B.4. Borrowings from Relatives 1,765 1,907 2,152 2,423 12.8
B.5. Inter-Corporate Borrowings 78,504 79,826 1,06,117 1,28,412 32.9
B.6. Commercial Papers 44,070 51,293 73,928 85,034 44.1
B.7. Interest Accrued 15,770 18,480 21,948 25,040 18.8
B.8. Others 2,81,818 3,25,043 3,77,741 3,53,048 16.2
5. Current Liabilities & Provisions 2,84,171 3,05,588 3,27,615 3,55,683 7.2
Total Liabilities/ Total Assets 33,17,880 37,79,949 43,27,135 45,52,297 14.5
1. Loans & Advances 24,95,502 28,67,111 33,22,733 34,88,965 15.9
1.1. Secured 16,80,739 21,84,049 25,28,823 26,36,646 15.8
1.2. Un-Secured 8,14,763 6,83,063 7,93,910 8,52,319 16.2
2. Investments 4,57,942 5,71,606 6,49,368 6,65,497 13.6
2.1. Govt. Securities 54,390 72,614 97,693 1,08,408 34.5
2.2. Equity Shares 2,68,591 3,60,250 3,81,385 3,46,781 5.9
2.3. Preference Shares 6,967 8,574 8,892 8,745 3.7
2.4. Debentures & Bonds 31,561 36,209 45,440 47,578 25.5
2.5. Units of Mutual Funds 55,629 50,026 68,011 1,02,065 35.9
2.6. Commercial Papers 485 1,566 1,536 3,387 -1.9
2.7. Other Investments 40,319 42,368 46,411 48,534 9.5
3. Cash & Bank Balances 1,25,159 1,30,332 1,49,535 1,75,192 14.7
of which:
3.1. Cash in Hand 5,738 5,774 4,410 22,338 -23.6
3.2. Deposits with Banks 1,08,921 1,13,416 1,29,819 1,37,645 14.5
4. Others 2,39,276 2,10,900 2,05,499 2,22,643 -2.6
Memo Items
1. Capital Market Exposure (CME) 2,66,164 3,52,575 3,74,866 3,75,160 6.3
of which: Equity Shares 1,98,622 2,75,344 2,79,369 2,69,230 1.5
2. CME as per cent to Total Assets 8.0 9.3 8.7 8.2
3. Leverage Ratio 4.3 4.0 4.0 4.2
- : Not applicable or Not available or Nil
Notes: 1. Data are provisional. Percentage figures are rounded-off.
2. Data for NBFCs (excluding CICs, HFCs and SPDs) falling in upper and middle layers.
3. The data is based on the classification of NBFCs by layers as per the list of NBFCs registered with the RBI. Layer-wise identification of NBFCs
up to March-2025 is based on their position as on December 31, 2024. For September-2025, the same position is considered, except where
there was change in layer of NBFC between January and September 2025.
Source: Supervisory returns, RBI.
186APPENDIX TABLE
Appendix Table VI.4: Consolidated Balance Sheet of NBFC-D
(` crore)
Items End-March End-March End-March End-September Percentage
Variation
2023 2024 2025 2025 2024-25
1 2 3 4 5 6
1. Share Capital 7,921 8,040 8,522 9,013 6.0
2. Reserves & Surplus 1,26,012 1,55,218 1,82,854 1,97,267 17.8
3. Public Deposits 84,975 1,02,959 1,21,178 1,31,730 17.7
4. Total Borrowings (A+B) 3,64,421 4,57,042 5,67,983 5,85,471 24.3
A. Secured Borrowings 3,05,566 3,81,475 4,83,267 5,02,411 26.7
A.1. Debentures 1,09,230 1,25,051 1,56,143 1,80,688 24.9
A.2. Borrowings from Banks 1,29,707 1,71,615 1,83,932 1,98,150 7.2
A.3. Borrowings from FIs 9,593 10,835 21,929 19,432 102.4
A.4. Interest Accrued 2,656 3,294 1,248 989 -62.1
A.5. Others 54,381 70,679 1,20,014 1,03,152 69.8
B. Un-Secured Borrowings 58,854 75,567 84,717 83,060 12.1
B.1. Debentures 7,553 7,902 8,431 8,914 6.7
B.2. Borrowings from Banks 905 652 1,450 1,000 122.2
B.3. Borrowings from FIs - - 2,405 2,342 -
B.4. Borrowings from Relatives 26 29 26 22 -9.7
B.5. Inter-Corporate Borrowings 18,105 23,090 29,968 29,555 29.8
B.6. Commercial Papers 16,589 27,682 28,256 27,387 2.1
B.7. Interest Accrued 1,472 1,711 420 345 -75.5
B.8. Others 14,205 14,501 13,761 13,494 -5.1
5. Current Liabilities & Provisions 73,324 81,691 90,773 1,01,251 11.1
Total Liabilities/ Total Assets 6,56,653 8,04,950 9,71,310 10,24,732 20.7
1. Loans & Advances 5,52,514 6,86,249 8,14,170 8,74,482 18.6
1.1. Secured 4,22,323 4,83,119 5,67,022 5,97,425 17.4
1.2. Un-Secured 1,30,191 2,03,130 2,47,148 2,77,057 21.7
2. Investments 57,492 69,131 83,016 83,073 20.1
2.1. Govt. Securities 30,006 40,202 42,141 46,999 4.8
2.2. Equity Shares 15,439 16,516 16,958 21,275 2.7
2.3. Preference Shares 67 6 6 6 -
2.4. Debentures & Bonds 335 218 980 1055 348.8
2.5. Units of Mutual Funds 6,376 3,765 5,900 4,073 56.7
2.6. Commercial Papers 705 1,736 1,881 2,585 8.4
2.7. Other Investments 4,564 6,688 15,150 7,081 126.5
3. Cash & Bank Balances 28,982 28,410 46,517 36,216 63.7
of which:
3.1. Cash in Hand 607 1,086 2,132 369 96.3
3.2. Deposits with Banks 26,398 23,247 44,070 35,661 89.6
4. Others 17,665 21,159 27,607 30,961 30.5
Memo Items
1. Capital Market Exposure (CME) 26,409 38,919 36,411 41,099 -6.4
of which: Equity Shares 2,283 3,769 12,914 15,118 242.6
2. CME as per cent to Total Assets 4.0 4.8 3.7 4.0
3. Leverage Ratio 4.3 4.3 4.4 4.4
- : Not applicable or Not available or Nil
Notes: 1. Data are provisional. Percentage figures are rounded-off.
2. Data for NBFCs (excluding CICs, HFCs and SPDs) falling in upper and middle layers.
3. The data is based on the classification of NBFCs by layers as per the list of NBFCs registered with the RBI. Layer-wise identification of NBFCs
up to March-2025 is based on their position as on December 31, 2024. For September-2025, the same position is considered, except where
there was change in layer of NBFC between January and September 2025.
Source: Supervisory returns, RBI.
187Report on Trend and Progress of Banking in India 2024-25
Appendix Table VI.5: Credit to Various Sectors by NBFCs
(` crore)
Items End-March End-March End-March End-September Percentage
Variation
2023 2024 2025 2025 2024-25
1 2 3 4 5 6
Gross Advances (1 to 5) 34,13,804 40,52,732 48,38,744 52,05,544 19.4
1. Agriculture and Allied Activities 60,717 84,712 82,059 87,840 -3.1
2. Industry (2.1 to 2.2 equals 2.a to 2.d) 17,36,685 19,37,033 22,91,605 23,94,110 18.3
2.1 Power 9,40,408 11,26,554 12,85,589 13,21,790 14.1
2.2 Others 7,96,277 8,10,479 10,06,016 10,72,320 24.1
Total 2.a to 2.d 17,36,685 19,37,032 22,91,605 23,94,110 18.3
2.a Micro and Small 89,931 1,03,138 1,25,723 1,41,181 21.9
2.b Medium 19,479 21,297 23,510 25,251 10.4
2.c Large 10,27,341 12,37,653 13,96,438 14,49,186 12.8
2.d Others 5,99,934 5,74,944 7,45,934 7,78,493 29.7
3. Services (3.1 to 3.10 equals 3.a to 3.d) 4,52,917 5,73,198 7,44,181 8,01,470 29.8
3.1 Transport Operators 1,02,886 1,32,778 1,61,937 1,66,426 22.0
3.2 Computer Software 2,110 3,083 3,534 4,488 14.6
3.3 Tourism, Hotel and Restaurants 7,547 7,451 10,927 12,869 46.6
3.4 Shipping 185 273 192 198 -29.5
3.5 Professional Services 23,665 25,402 33,698 43,103 32.7
3.6 Trade 70,448 95,149 1,27,923 1,33,648 34.4
3.6.1 Wholesale Trade (other than Food
10,754 16,156 24,837 26,964 53.7
Procurement)
3.6.2 Retail Trade 59,693 78,993 1,03,086 1,06,684 30.5
3.7 Commercial Real Estate 81,911 89,809 95,624 1,01,664 6.5
3.8 NBFCs 48,024 60,899 70,712 72,146 16.1
3.9 Aviation 826 503 458 615 -9.0
3.10 Other Services 1,15,316 1,57,853 2,39,178 2,66,313 51.5
Total 3.a to 3.d 4,52,917 5,73,198 7,44,181 8,01,470 29.8
3.a Micro and Small 1,33,000 2,11,865 3,01,830 3,31,232 42.5
3.b Medium 20,332 29,100 26,329 28,351 -9.5
3.c Large 78,526 81,914 1,16,965 1,20,865 42.8
3.d Others 2,21,058 2,50,320 2,99,057 3,21,022 19.5
4. Retail Loans (4.1 to 4.10) 10,48,337 13,82,146 16,31,900 18,38,897 18.1
4.1 Housing Loans (incl. priority sector Housing) 32,172 33,822 46,392 71,219 37.2
4.2 Consumer Durables 31,541 40,957 48,379 55,460 18.1
4.3 Credit Card Receivables 44,007 55,736 61,781 66,272 10.8
4.4 Vehicle/Auto Loans 3,82,320 4,77,135 5,71,954 6,11,714 19.9
4.5 Education Loans 25,324 45,026 63,551 73,099 41.1
4.6 Advances against Fixed Deposits (incl. FCNR(B),
215 153 191 237 24.3
etc.)
4.7 Advances to Individuals against Shares, Bonds,
13,389 21,814 26,488 30,070 21.4
etc.
4.8 Advances to Individuals against Gold 1,29,787 1,54,315 2,08,482 2,61,728 35.1
4.9 Micro finance loan/ SHG Loan 1,16,707 1,50,750 1,33,186 1,24,089 -11.7
4.10 Other Retail Loans 2,72,875 4,02,437 4,71,497 5,45,009 17.2
5. Others 1,15,149 75,643 88,998 83,227 17.7
- : Not applicable or Not available or Nil
Notes: 1. Data are provisional. Percentage figures are rounded-off.
2. Data for NBFCs (excluding CICs, HFCs and SPDs) falling in upper and middle layers.
3. The data is based on the classification of NBFCs by layers as per the list of NBFCs registered with the RBI. Layer-wise identification of NBFCs
up to March-2025 is based on their position as on December 31, 2024. For September-2025, the same position is considered, except where
there was change in layer of NBFC between January and September 2025.
Source: Supervisory returns, RBI.
188APPENDIX TABLE
Appendix Table VI.6: Financial Performance of NBFC-UL
(` crore)
Items 2022-23 2023-24 2024-25 H1:2025-26
1 2 3 4 5
A. Total Income 1,41,310 1,82,115 2,38,342 1,42,597
of which: (i) Fund Based Income 1,32,676 1,71,480 2,26,220 1,33,048
(93.9) (94.2) (94.9) (93.3)
(ii) Fee Based Income 2,424 4,219 5,264 3,161
(1.7) (2.3) (2.2) (2.2)
B. Expenditure 1,02,181 1,30,395 1,74,008 1,06,522
(i) Financial Expenditure 52,579 72,748 97,952 59,104
(51.5) (55.8) (56.3) (55.5)
of which: Interest payment 29,132 42,930 59,696 36,313
(28.5) (32.9) (34.3) (34.1)
(ii) Operating Expenditure 30,588 37,349 46,287 26,204
(29.9) (28.6) (26.6) (24.6)
(iii) Others 19,014 20,298 29,769 21,214
(18.6) (15.6) (17.1) (19.9)
C. Tax Provisions 10,373 13,102 15,460 9,063
D. Profit Before Tax 39,129 51,720 64,334 36,075
E. Net Profit 28,756 38,618 48,873 27,012
F. Total Assets 10,71,050 13,59,521 17,81,991 19,98,860
G. Financial Ratios (as per cent of total assets)
(i) Income 13.2 13.4 13.4 14.3
(ii) Fund Income 12.4 12.6 12.7 13.3
(iii) Fee Income 0.2 0.3 0.3 0.3
(iv) Expenditure 9.5 9.6 9.8 10.7
(v) Financial Expenditure 4.9 5.4 5.5 5.9
(vi) Operating Expenditure 2.9 2.8 2.6 2.6
(vii) Tax Provision 1.0 1.0 0.9 0.9
(viii) Net Profit 2.7 2.8 2.7 2.7
H. Cost to Income Ratio (per cent) 55.9 52.7 54.2 56.8
- : Not applicable or Not available or Nil
Cost to Income Ratio = (Total expenditure-interest expenses)/ (Total income-interest expenses) *100.
Notes: 1. Data are provisional. Percentage figures are rounded-off.
2. Data for NBFCs (excluding CICs, HFCs and SPDs) falling in upper and middle layers.
3. The data is based on the classification of NBFCs by layers as per the list of NBFCs registered with the RBI. Layer-wise identification of NBFCs
up to March-2025 is based on their position as on December 31, 2024. For September-2025, the same position is considered, except where
there was change in layer of NBFC between January and September 2025.
4. Figures in paranthesis are share (in per cent) to respective total.
5. Financial ratios for H1:2025-26 have been annualised.
Source: Supervisory returns, RBI.
189Report on Trend and Progress of Banking in India 2024-25
Appendix Table VI.7: Financial Performance of NBFC-ML
(` crore)
Items 2022-23 2023-24 2024-25 H1: 2025-26
1 2 3 4 5
A. Total Income 3,27,070 4,11,632 4,47,203 2,45,836
of which: (i) Fund Based Income 2,83,262 3,77,011 4,12,886 2,26,312
(86.6) (91.6) (92.3) (92.1)
(ii) Fee Based Income 14,646 19,093 21,106 12,242
(4.5) (4.6) (4.7) (5.0)
B. Expenditure 2,32,665 2,84,049 3,41,343 1,80,446
(i) Financial Expenditure 1,41,426 1,70,805 2,07,326 1,12,702
(60.8) (60.1) (60.7) (62.5)
of which: Interest payment 72,915 96,303 1,00,928 52,023
(31.3) (33.9) (29.6) (28.8)
(ii) Operating Expenditure 48,333 60,318 70,617 40,445
(20.8) (21.2) (20.7) (22.4)
(iii) Others 42,906 52,926 63,400 27,299
(18.4) (18.6) (18.6) (15.1)
C. Tax Provisions 15,357 25,242 22,448 12,432
D. Profit Before Tax 94,405 1,27,583 1,05,860 65,390
E. Net Profit 79,047 1,02,341 83,412 52,958
F. Total Assets 33,17,880 37,79,949 43,27,135 45,52,297
G. Financial Ratios (as per cent of total assets)
(i) Income 9.9 10.9 10.3 10.8
(ii) Fund Income 8.5 10.0 9.5 9.9
(iii) Fee Income 0.4 0.5 0.5 0.5
(iv) Expenditure 7.0 7.5 7.9 7.9
(v) Financial Expenditure 4.3 4.5 4.8 5.0
(vi) Operating Expenditure 1.5 1.6 1.6 1.8
(vii) Tax Provision 0.5 0.7 0.5 0.5
(viii) Net Profit 2.4 2.7 1.9 2.3
H. Cost to Income Ratio (per cent) 49.2 47.1 55.9 50.9
- : Not applicable or Not available or Nil
Cost to Income Ratio = (Total expenditure-interest expenses)/ (Total income-interest expenses) *100.
Notes: 1. Data are provisional. Percentage figures are rounded-off.
2. Data for NBFCs (excluding CICs, HFCs and SPDs) falling in upper and middle layers.
3. The data is based on the classification of NBFCs by layers as per the list of NBFCs registered with the RBI. Layer-wise identification of NBFCs
up to March-2025 is based on their position as on December 31, 2024. For September-2025, the same position is considered, except where
there was change in layer of NBFC between January and September 2025.
4. Figures in parenthesis are share (in per cent) to respective total.
5. Financial ratios for H1:2025-26 have been annualised.
Source: Supervisory returns, RBI.
190APPENDIX TABLE
Appendix Table VI.8: Financial Assistance Sanctioned and Disbursed by
Financial Institutions (Continued)
(` crore)
Institutions Loans*
2023-24 2024-25 H1:2024-25 H1:2025-26
S D S D S D S D
1 2 3 4 5 6 7 8 9
A. All India financial institutions
9,58,204 8,73,610 9,61,614 8,76,084 3,73,911 2,89,242 3,60,509 3,18,540
(1 to 5)
1. NABARD 4,42,156 4,36,033 4,52,474 4,48,488 1,65,768 1,05,670 96,669 1,32,766
2. SIDBI 3,02,581 2,94,942 2,45,980 2,35,243 1,13,520 1,14,244 1,19,742 1,15,015
3. EXIM Bank 91,672 84,696 1,17,771 1,20,922 46,180 41,910 46,488 47,612
4. NHB@ 38,738 32,103 44,327 33,369 17,713 12,745 33,135 7,084
5. NaBFID 83,057 25,836 1,01,063 38,062 30,729 14,672 64,475 16,062
B. Specialised financial
1,364 763 1,599 915 943 423 1,004 472
institutions (6, 7 and 8)
6. IVCF - - - - - - - -
7. ICICI venture - - - - - - - -
8. TFCI 1,364 763 1,599 915 943 423 1,004 472
C. Investment institutions
- - - - - - - -
(9 and 10)
9. LIC - - - - - - - -
10. GIC - - - - - - - -
D. Financial Institutions
9,59,568 8,74,372 9,63,213 8,76,999 3,74,854 2,89,665 3,61,513 3,19,012
(A+B+C)
E. State level institutions
6,966 7,231 7,771 7,113 - - - -
(11 and 12)
11. SFCs^ 6,966 7,231 7,771 7,113 - - - -
12. SIDCs - - - - - - - -
F. Total assistance by all
9,66,534 8,81,603 9,70,984 8,84,112 3,74,854 2,89,665 3,61,513 3,19,012
financial institutions (D+E)
S: Sanctions. D: Disbursements. -: Nil or Not Available or Not Meaningful.
*: Loans include rupee loans and foreign currency loans.
@: Data for NHB pertain to July-June.
#: Others include guarantees.
^: Data on sanctions pertain to five SFCs and data on disbursements pertain to six SFCs.
Notes: 1. Data are provisional.
2. Components may not add up to the total due to rounding off.
Source: The respective Financial Institutions.
191Report on Trend and Progress of Banking in India 2024-25
Appendix Table VI.8: Financial Assistance Sanctioned and Disbursed by
Financial Institutions (Continued)
(` crore)
Institutions Underwriting and Direct Subscription
2023-24 2024-25 H1:2024-25 H1:2025-26
S D S D S D S D
1 10 11 12 13 14 15 16 17
A. All India financial institutions
- - 76 91 - - 2 5
(1 to 5)
1. NABARD - - - - - - - -
2. SIDBI - - - 15 - - - 3
3. EXIM Bank - - - - - - - -
4. NHB@ - - - - - - - -
5. NaBFID - - 76 76 - - 2 2
B. Specialised financial
- - - - - - - -
institutions (6, 7 and 8)
6. IVCF - - - - - - - -
7. ICICI venture - - - - - - - -
8. TFCI - - - - - - - -
C. Investment institutions
1,66,525 78,584 1,67,420 78,311 83,050 33,177 32,400 20,444
(9 and 10)
9. LIC 1,66,525 78,584 1,67,420 78,311 83,050 33,177 32,400 20,444
10. GIC - - - - - - - -
D. Financial Institutions
1,66,525 78,584 1,67,496 78,402 83,050 33,177 32,402 20,449
(A+B+C)
E. State level institutions
- - - - - - - -
(11 and 12)
11. SFCs^ - - - - - - - -
12. SIDCs - - - - - - - -
F. Total assistance by all
1,66,525 78,584 1,67,496 78,402 83,050 33,177 32,402 20,449
financial institutions (D+E)
S: Sanctions. D: Disbursements. -: Nil or Not Available or Not Meaningful.
*: Loans include rupee loans and foreign currency loans.
@: Data for NHB pertain to July-June.
#: Others include guarantees.
^: Data on sanctions pertain to five SFCs and data on disbursements pertain to six SFCs.
Notes: 1. Data are provisional.
2. Components may not add up to the total due to rounding off.
Source: The respective Financial Institutions.
192APPENDIX TABLE
Appendix Table VI.8: Financial Assistance Sanctioned and Disbursed by
Financial Institutions (Continued)
(` crore)
Institutions Others#
2023-24 2024-25 H1:2024-25 H1:2025-26
S D S D S D S D
1 18 19 20 21 22 23 24 25
A. All India financial
15,364 5,335 22,581 8,304 10,726 1,733 10,785 3,470
institutions (1 to 5)
1. NABARD 493 551 345 556 83 127 225 283
2. SIDBI 9 - 9 - 2 - 22 -
3. EXIM Bank 14,640 4,377 22,101 7,350 10,616 1,498 10,538 2,809
4. NHB@ - - - - - - - -
5. NaBFID 222 407 126 398 26 108 - 378
B. Specialised financial
90 90 - - - - 115 53
institutions (6, 7 and 8)
6. IVCF - - - - - - - -
7. ICICI venture - - - - - - - -
8. TFCI 90 90 - - - - 115 53
C. Investment institutions
- 245 1,113 716 - - - -
(9 and 10)
9. LIC - 245 1,113 716 - - - -
10. GIC - - - - - - - -
D. Financial Institutions
15,454 5,670 23,693 9,020 10,726 1,733 10,900 3,523
(A+B+C)
E. State level institutions
- - - - - - - -
(11 and 12)
11. SFCs^ - - - - - - - -
12. SIDCs - - - - - - - -
F. Total assistance by all
15,454 5,670 23,693 9,020 10,726 1,733 10,900 3,523
financial institutions (D+E)
S: Sanctions. D: Disbursements. -: Nil or Not Available or Not Meaningful.
*: Loans include rupee loans and foreign currency loans.
@: Data for NHB pertain to July-June.
#: Others include guarantees.
^: Data on sanctions pertain to five SFCs and data on disbursements pertain to six SFCs.
Notes: 1. Data are provisional.
2. Components may not add up to the total due to rounding off.
Source: The respective Financial Institutions.
193Report on Trend and Progress of Banking in India 2024-25
Appendix Table VI.8: Financial Assistance Sanctioned and Disbursed by
Financial Institutions (Concluded)
(` crore)
Institutions Total Percentage Variation
2023-24 2024-25 H1:2024-25 H1:2025-26 2024-25 H1:2025-26
S D S D S D S D S D S D
1 26 27 28 29 30 31 32 33 34 35 36 37
A. All India financial 9,73,568 8,78,944 9,84,270 8,84,479 3,84,638 2,90,974 3,71,296 3,22,014 1.1 0.6 -3.5 10.7
institutions (1 to 5)
1. NABARD 4,42,649 4,36,584 4,52,819 4,49,044 1,65,851 1,05,797 96,894 1,33,049 2.3 2.9 -41.6 25.8
2. SIDBI 3,02,590 2,94,942 2,45,989 2,35,258 1,13,522 1,14,244 1,19,765 1,15,018 -18.7 -20.2 5.5 0.7
3. EXIM Bank 1,06,312 89,073 1,39,871 1,28,272 56,796 43,407 57,026 50,421 31.6 44.0 0.4 16.2
4. NHB@ 38,738 32,103 44,327 33,369 17,713 12,745 33,135 7,084 14.4 3.9 87.1 -44.4
5. NaBFID 83,280 26,243 1,01,265 38,535 30,756 14,780 64,476 16,442 21.6 46.8 109.6 11.2
B. Specialised financial 1,454 853 1,599 915 943 423 1,119 525 10.0 7.3 18.7 24.0
institutions
(6, 7 and 8)
6. IVCF - - - - - - - - - - - -
7. ICICI venture - - - - - - - - - - - -
8. TFCI 1,454 853 1,599 915 943 423 1,119 525 10.0 7.3 18.7 24.0
C. Investment 1,66,525 78,829 1,68,533 79,027 83,050 33,177 32,400 20,444 1.2 0.3 -61.0 -38.4
institutions
(9 and 10)
9. LIC 1,66,525 78,829 1,68,533 79,027 83,050 33,177 32,400 20,444 1.2 0.3 -61.0 -38.4
10. GIC - - - - - - - - - - - -
D. Financial Institutions 11,41,547 9,58,626 11,54,402 9,64,421 4,68,630 3,24,574 4,04,814 3,42,983 1.1 0.6 -13.6 5.7
(A+B+C)
E. State level 6,966 7,231 7,771 7,113 - - - - 11.6 -1.6 - -
institutions
(11 and 12)
11. SFCs^ 6,966 7,231 7,771 7,113 - - - - 11.6 -1.6 - -
12. SIDCs - - - - - - - - - - - -
F. Total assistance by all 11,48,513 9,65,857 11,62,173 9,71,534 4,68,630 3,24,574 4,04,814 3,42,983 1.2 0.6 -13.6 5.7
financial institutions
(D+E)
S: Sanctions. D: Disbursements. -: Nil or Not Available or Not Meaningful.
*: Loans include rupee loans and foreign currency loans.
@: Data for NHB pertain to July-June.
#: Others include guarantees.
^: Data on sanctions pertain to five SFCs and data on disbursements pertain to six SFCs.
Notes: 1. Data are provisional.
2. Components may not add up to the total due to rounding off.
Source: The respective Financial Institutions.
194APPENDIX TABLE
Appendix Table VI.9: Financial Performance of Standalone Primary Dealers
(` crore)
Sl. Name of the Year Income Expenditure Profit Profit Return on
No. Primary Dealers before after networth
Interest Trading Other Total Interest Other Total
tax tax (per cent)
income profit income income expenses expenses expenditure
(including
discount
income)
1 2 3 4 5 6 7 8 9 10 11 12 13
1 STCI Primary 2023-24 1,041 139 2 1,182 944 43 987 266 198 22.4
Dealer Ltd.
2024-25 1,127 217 2 1,346 987 53 1,040 341 254 23.3
H1:2025-26 596 21 1 618 470 26 496 54 39 6.4
2 SBI DFHI Ltd. 2023-24 1,378 44 8 1,430 1,226 41 1,267 242 180 12.0
2024-25 1,675 124 6 1,805 1,472 58 1,530 443 331 18.6
H1:2025-26 891 26 6 923 688 33 721 173 127 12.6
3 ICICI Securities 2023-24 2,110 312 26 2,448 1,871 172 2,043 586 437 25.4
Primary
2024-25 2,376 418 35 2,829 2,120 191 2,311 719 536 27.6
Dealership Ltd.
H1:2025-26 1,367 305 21 1,693 1,085 101 1,186 552 412 38.9
4 PNB Gilts Ltd. 2023-24 1,518 -48 8 1,478 1,411 66 1,477 99 70 5.4
2024-25 1,512 75 12 1,599 1,312 55 1,368 311 233 16.2
H1:2025-26 845 73 6 924 669 38 708 159 114 14.3
5 Morgan Stanley 2023-24 1,376 280 3 1,659 1,049 73 1,121 560 418 11.4
India Primary
2024-25 1,522 126 26 1,675 1,161 97 1,258 413 307 7.6
Dealer Pvt. Ltd.
H1:2025-26 632 -104 1 529 425 51 476 248 184 8.6
6 Nomura 2023-24 615 215 2 832 519 72 590 118 88 7.4
Fixed Income
2024-25 1,082 184 7 1,273 896 72 968 161 121 7.7
Securities Pvt.
Ltd. H1:2025-26 786 -163 13 635 550 38 588 64 48 5.0
7 Goldman Sachs 2023-24 1,120 118 3 1,241 878 58 935 365 272 10.5
(India) Capital
2024-25 1,341 186 1 1,528 1,053 75 1,129 443 331 11.5
Markets Pvt. Ltd.
H1:2025-26 418 234 1 653 252 41 292 258 194 12.3
8 Total 2023-24 9,158 1,060 52 10,270 7,897 524 8,422 2,237 1,663 12.9
2024-25 10,635 1,330 90 12,055 9,002 601 9,602 2,831 2,113 14.3
H1:2025-26 5,535 391 48 5,974 4,139 329 4,468 1,507 1,117 13.7
Return on Networth = Profit after Tax / Average of (Share Capital + Reserve and Surplus)
Note: The return on networth for H1:2025-26 has been annualised.
Source: Returns submitted by SPDs.
195Report on Trend and Progress of Banking in India 2024-25
Appendix Table VI.10: Select Financial Indicators of Primary Dealers
(` crore)
Sr. Name of the 2021-22 2022-23 2023-24 2024-25 H1: 2021-22 2022-23 2023-24 2024-25 H1:
No. Primary Dealers 2025-26 2025-26
Capital Funds CRAR
(Tier I + Tier II+ Eligible Tier III) (Per cent)
1 2 3 4 5 6 7 8 9 10 11 12
STCI Primary
1 777 790 902 1,177 1,251 32.3 21.8 29.1 30.4 26.4
Dealer Ltd.
2 SBI DFHI Ltd. 1,311 1,247 1,426 1,738 1,832 42.4 46.1 36.0 36.2 29.0
ICICI Securities
3 Primary 1,899 1,792 1,903 2,332 2,607 47.7 42.9 26.6 31.8 26.5
Dealership Ltd.
4 PNB Gilts Ltd. 1,426 1,238 1,313 1,517 1,629 66.4 31.8 34.0 42.7 43.6
Morgan Stanley
5 India Primary 2,290 3,384 3,774 4,092 4,332 58.5 88.6 69.8 50.1 52.6
Dealer Pvt. Ltd.
Nomura Fixed
6 Income Securities 1,068 949 1,226 1,851 1,867 49.1 43.0 33.7 40.8 36.4
Pvt. Ltd.
Goldman Sachs
7 (India) Capital 648 2,363 2,429 2,309 2,599 116.1 76.0 67.6 53.4 77.3
Markets Pvt. Ltd.
Total 9,418 11,763 12,973 15,017 16,117 51.5 50.0 42.2 41.0 39.0
Stock of Government Securities and Treasury Total Assets
Bills (Market value) (Net of current liabilities and provisions)
13 14 15 16 17 18 19 20 21 22
STCI Primary
1 12,958 13,575 12,034 12,177 14,202 13,659 14,862 14,971 15,793 19,774
Dealer Ltd.
2 SBI DFHI Ltd. 9,726 13,338 17,697 20,878 21,033 12,819 17,143 22,053 25,975 26,737
ICICI Securities
3 Primary 13,743 22,149 28,723 33,793 37,713 17,548 31,861 33,810 38,757 44,086
Dealership Ltd.
4 PNB Gilts Ltd. 13,932 16,921 20,677 20,535 21,886 15,958 20,498 23,729 23,927 26,484
Morgan Stanley
5 India Primary 11,265 9,948 24,533 24,255 14,965 16,320 15,439 28,120 26,697 19,916
Dealer Pvt. Ltd.
Nomura Fixed
6 Income Securities 4,069 5,436 11,011 13,439 16,942 5,635 7,410 13,158 17,612 21,979
Pvt. Ltd.
Goldman Sachs
7 (India) Capital 3,468 15,491 21,853 25,257 11,891 4,730 17,952 22,826 25,668 11,742
Markets Pvt. Ltd.
Total 69,163 96,859 1,36,527 1,50,334 1,38,632 86,670 1,25,165 1,58,667 1,74,429 1,70,718
Source: Return submitted by SPDs.
196