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

**Executive Summary** This report, released by the Reserve Bank of India on December 29, 2025, in compliance with Section 36 (2) of the Banking Regulation Act, 1949, 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. **Key Points / Main Content** * **Commercial Banks:** * 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. * **Co-operative Banks:** * 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. * **Non-Banking Financial Companies:** * 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. **Impact Analysis** **Commercial Banks** * **Impact:** Performance assessment for the period 2024-2026 provided, indicating resilience and growth along with strengthened asset quality and profitability. * **Action Required:** Continue to maintain the current trends of growth, asset quality, and profitability. **Co-operative Banks** * **Impact:** Performance assessment for the period 2024-2025 provided, indicating higher growth with improved asset quality and strengthened capital buffers. * **Action Required:** Continue to maintain the current trends of growth, asset quality, and capital buffers. **Non-Banking Financial Companies** * **Impact:** Performance assessment for the period of 2024-2025 provided, indicating double-digit credit growth and improved asset quality. * **Action Required:** Continue to maintain the current trends of growth, asset quality, and robust capital buffers.

Key Entities Referenced