**Executive Summary**
This document is a press release dated December 29, 2025, from the Reserve Bank of India, announcing the release of the "Report on Trend and Progress of Banking in India 2024-25." The report reviews the performance of the banking sector, including commercial, co-operative banks, and non-banking financial institutions, during 2024-25 and 2025-26. The document highlights key findings from the report.
**Key Points / Main Content**
* **Commercial Banking Sector Performance:**
* The Indian commercial banking sector showed resilience during 2024-25.
* Deposits and credit of scheduled commercial banks (SCBs) grew in double digits.
* The capital to risk-weighted assets ratio of SCBs was 17.4 percent at end-March 2025 and 17.2 percent at end-September 2025.
* Asset quality strengthened, with the gross non-performing assets (GNPA) ratio declining to 2.2 percent at end-March 2025 and 2.1 percent at end-September 2025.
* SCBs profitability remained robust, with return on assets (RoA) at 1.4 percent and return on equity (RoE) at 13.5 percent in 2024-25.
* During the first half of 2025-26, RoA and RoE of the SCBs stood at 1.3 percent and 12.5 percent, respectively.
* **Co-operative Banks Performance:**
* The consolidated balance sheet of urban co-operative banks recorded higher growth in 2024-25 compared to the previous year.
* Asset quality improved for the fourth consecutive year, along with strengthened capital buffers and profitability.
* **Non-Banking Financial Companies Performance:**
* Non-banking financial companies continued to record double-digit credit growth with robust capital buffers.
* Asset quality also improved during the year.
**Impact Analysis**
**Stakeholder: Reserve Bank of India (RBI)**
* **Impact**: Responsible for compiling and releasing the "Report on Trend and Progress of Banking in India 2024-25".
* **Action Required**: Continue monitoring the performance of the banking sector and implementing relevant regulations.
**Stakeholder: Commercial Banks, Co-operative Banks, and Non-Banking Financial Institutions**
* **Impact**: Subject to the analysis and findings of the report.
* **Action Required**: Maintain capital adequacy, manage asset quality, and ensure robust financial performance as indicated by the report.
**Stakeholder: General Public/Investors/Economists**
* **Impact**: Provided with an overview of the banking sector's performance.
* **Action Required**: Interpret the report's findings to assess the health and stability of the banking sector.
Key Entities Referenced
Banking Regulation Act, 1949: Governs the regulation of banking companies in India.
Report on Trend and Progress of Banking in India 2024-25: Annual publication by the Reserve Bank of India analyzing the performance of the banking sector.
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector.
प्रेस प्रकाशनी PRESS RELEASE
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
वेबसाइट : www.rbi.org.in/hindi संचार िवभाग, केंद्रीय कायार्लय, शहीद भगत िसंह मागर्, फोटर्, मुंबई - 400 001
Website : www.rbi.org.in Department of Communication, Central Office, Shahid Bhagat Singh Marg, Fort,
ई-मेल/email : helpdoc@rbi.org.in Mumbai - 400 001 फोन/Phone: 022 - 2266 0502
December 29, 2025
Report on Trend and Progress of Banking in India 2024-25
Today, in compliance with Section 36 (2) of the Banking Regulation Act, 1949,
the Reserve Bank of India released the Report on Trend and Progress of Banking in
India 2024-25. This Report presents the performance of the banking sector,
including commercial banks, co-operative banks and non-banking financial
institutions, during 2024-25 and 2025-26 so far.
Highlights
• The Indian commercial banking sector remained resilient during 2024-25,
supported by double-digit balance sheet expansion. Deposits and credit of
scheduled commercial banks (SCBs) grew in double digits, albeit with a
moderation from the previous year.
• The capital to risk weighted assets ratio of SCBs was 17.4 per cent at end-
March 2025 and 17.2 per cent at end-September 2025.
• Asset quality strengthened further, with the gross non-performing assets
(GNPA) ratio declining to a multi-decadal low of 2.2 per cent at end-March
2025 and 2.1 per cent at end-September 2025.
• Profitability of the SCBs remained robust with the return on assets (RoA) at
1.4 per cent and return on equity (RoE) at 13.5 per cent in 2024-25. During
H1: 2025-26, RoA and RoE of the SCBs stood at 1.3 per cent and 12.5 per
cent, respectively.
• The consolidated balance sheet of urban co-operative banks recorded higher
growth in 2024-25 than that in the previous year. Their asset quality improved
for the fourth consecutive year, alongside strengthening of their capital buffers
and profitability.
• The non-banking financial companies continued to record double digit credit
growth along with robust capital buffers. Their asset quality also improved
during the year.
(Brij Raj)
Press Release: 2025-2026/1786 Chief General Manager