Robust performance by banks in FY25, says RBI report

Mumbai: Commercial banks maintained robust performance in 2024-25, with the gross non-performing assets (GNPA) ratio declining to a multi-decadal low of 2.2 per cent at March-end, according to a RBI report released on Monday.

The banking sector remained resilient during 2024-25, supported by a strong balance sheet, sustained profitability and improved asset quality, said the Re-port on Trend and Progress of Banking in India 2024-25.

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,” the report said.

Net profits of commercial banks increased during 2024-25, albeit at a slower pace compared to the previous year, it added.

Combined net profit of all scheduled commercial banks (SCBs) rose 14.8 per cent year-on-year to Rs 4.01 lakh crore during 2024-25. In 2023-24, their prof-it had increased by 32.8 per cent to about Rs 3.5 lakh crore.

The RBI report said the profitability of the SCBs remained robust with the re-turn 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 capital-to-risk-weighted assets ratio of SCBs was 17.4 per cent at March-end 2025 and 17.2 per cent at the end of September 2025, the report said. “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,” it pointed out.

Also, the consolidated balance sheet of urban co-operative banks recorded higher growth in 2024-25 than the previous year.